Correlation Between Samsung Life and DAEDUCK ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Samsung Life and DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and DAEDUCK ELECTRONICS CoLtd, you can compare the effects of market volatilities on Samsung Life and DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and DAEDUCK ELECTRONICS.
Diversification Opportunities for Samsung Life and DAEDUCK ELECTRONICS
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and DAEDUCK is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and DAEDUCK ELECTRONICS CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAEDUCK ELECTRONICS CoLtd 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 DAEDUCK ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAEDUCK ELECTRONICS CoLtd has no effect on the direction of Samsung Life i.e., Samsung Life and DAEDUCK ELECTRONICS go up and down completely randomly.
Pair Corralation between Samsung Life and DAEDUCK ELECTRONICS
Assuming the 90 days trading horizon Samsung Life is expected to generate 1.47 times less return on investment than DAEDUCK ELECTRONICS. In addition to that, Samsung Life is 1.93 times more volatile than DAEDUCK ELECTRONICS CoLtd. It trades about 0.04 of its total potential returns per unit of risk. DAEDUCK ELECTRONICS CoLtd is currently generating about 0.13 per unit of volatility. If you would invest 798,000 in DAEDUCK ELECTRONICS CoLtd on August 29, 2024 and sell it today you would earn a total of 33,000 from holding DAEDUCK ELECTRONICS CoLtd or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life vs. DAEDUCK ELECTRONICS CoLtd
Performance |
| Timeline |
| Samsung Life |
| DAEDUCK ELECTRONICS CoLtd |
Samsung Life and DAEDUCK ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and DAEDUCK ELECTRONICS
The main advantage of trading using opposite Samsung Life and DAEDUCK ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, DAEDUCK ELECTRONICS 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 DAEDUCK ELECTRONICS will offset losses from the drop in DAEDUCK ELECTRONICS's long position.| Samsung Life vs. Daejung Chemicals Metals | Samsung Life vs. Puloon Technology | Samsung Life vs. Lotte Chilsung Beverage | Samsung Life vs. Miwon Chemicals 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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