Correlation Between Samsung Life and Golden Bridge
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Golden Bridge 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 Golden Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Life Insurance and Golden Bridge Investment, you can compare the effects of market volatilities on Samsung Life and Golden Bridge 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 Golden Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Golden Bridge.
Diversification Opportunities for Samsung Life and Golden Bridge
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Golden is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Golden Bridge Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Bridge Investment 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 Insurance are associated (or correlated) with Golden Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Bridge Investment has no effect on the direction of Samsung Life i.e., Samsung Life and Golden Bridge go up and down completely randomly.
Pair Corralation between Samsung Life and Golden Bridge
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 1.92 times more return on investment than Golden Bridge. However, Samsung Life is 1.92 times more volatile than Golden Bridge Investment. It trades about 0.1 of its potential returns per unit of risk. Golden Bridge Investment is currently generating about -0.25 per unit of risk. If you would invest 10,060,000 in Samsung Life Insurance on August 25, 2024 and sell it today you would earn a total of 590,000 from holding Samsung Life Insurance or generate 5.86% 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 Insurance vs. Golden Bridge Investment
Performance |
| Timeline |
| Samsung Life Insurance |
| Golden Bridge Investment |
Samsung Life and Golden Bridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Golden Bridge
The main advantage of trading using opposite Samsung Life and Golden Bridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Golden Bridge 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 Golden Bridge will offset losses from the drop in Golden Bridge's long position.| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life vs. Microfriend |
| Golden Bridge vs. CG Hi Tech | Golden Bridge vs. Korea Computer | Golden Bridge vs. Hankook Furniture Co | Golden Bridge vs. BIT Computer 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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