Correlation Between Samsung Life and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Duksan Hi at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Samsung Life and Duksan Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Duksan Hi Metal, you can compare the effects of market volatilities on Samsung Life and Duksan Hi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Samsung Life with a short position of Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Duksan Hi.
Diversification Opportunities for Samsung Life and Duksan Hi
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Duksan is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal and Samsung Life is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Samsung Life are associated (or correlated) with Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Samsung Life i.e., Samsung Life and Duksan Hi go up and down completely randomly.
Pair Corralation between Samsung Life and Duksan Hi
Assuming the 90 days trading horizon Samsung Life is expected to generate 1.06 times more return on investment than Duksan Hi. However, Samsung Life is 1.06 times more volatile than Duksan Hi Metal. It trades about 0.09 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.36 per unit of risk. If you would invest 9,910,000 in Samsung Life on August 24, 2024 and sell it today you would earn a total of 550,000 from holding Samsung Life or generate 5.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life vs. Duksan Hi Metal
Performance |
| Timeline |
| Samsung Life |
| Duksan Hi Metal |
Samsung Life and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Duksan Hi
The main advantage of trading using opposite Samsung Life and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Duksan Hi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Duksan Hi will offset losses from the drop in Duksan Hi's long position.| Samsung Life vs. Dongil Metal Co | Samsung Life vs. Lotte Non Life Insurance | Samsung Life vs. CJ Seafood Corp | Samsung Life vs. Youngsin Metal Industrial |
| Duksan Hi vs. Korea Real Estate | Duksan Hi vs. Korea Ratings Co | Duksan Hi vs. IQuest Co | Duksan Hi vs. Wonbang Tech Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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