Correlation Between Samsung Life and Access Bio
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Access Bio 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 Access Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life and Access Bio, you can compare the effects of market volatilities on Samsung Life and Access Bio 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 Access Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Access Bio.
Diversification Opportunities for Samsung Life and Access Bio
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Access is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life and Access Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Bio 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 Access Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Bio has no effect on the direction of Samsung Life i.e., Samsung Life and Access Bio go up and down completely randomly.
Pair Corralation between Samsung Life and Access Bio
Assuming the 90 days trading horizon Samsung Life is expected to generate 1.12 times more return on investment than Access Bio. However, Samsung Life is 1.12 times more volatile than Access Bio. It trades about 0.06 of its potential returns per unit of risk. Access Bio is currently generating about -0.06 per unit of risk. If you would invest 10,250,000 in Samsung Life on August 28, 2024 and sell it today you would earn a total of 350,000 from holding Samsung Life or generate 3.41% 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. Access Bio
Performance |
| Timeline |
| Samsung Life |
| Access Bio |
Samsung Life and Access Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Access Bio
The main advantage of trading using opposite Samsung Life and Access Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Access Bio 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 Access Bio will offset losses from the drop in Access Bio'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 |
| Access Bio vs. Dongbang Transport Logistics | Access Bio vs. Taegu Broadcasting | Access Bio vs. Ssangyong Information Communication | Access Bio vs. Nable Communications |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |