Correlation Between Samsung Life and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Iljin Display 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 Iljin Display 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 Iljin Display, you can compare the effects of market volatilities on Samsung Life and Iljin Display 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 Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Iljin Display.
Diversification Opportunities for Samsung Life and Iljin Display
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Iljin is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display 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 Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Samsung Life i.e., Samsung Life and Iljin Display go up and down completely randomly.
Pair Corralation between Samsung Life and Iljin Display
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 3.08 times more return on investment than Iljin Display. However, Samsung Life is 3.08 times more volatile than Iljin Display. It trades about 0.1 of its potential returns per unit of risk. Iljin Display is currently generating about -0.25 per unit of risk. If you would invest 10,180,000 in Samsung Life Insurance on August 31, 2024 and sell it today you would earn a total of 610,000 from holding Samsung Life Insurance or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. Iljin Display
Performance |
| Timeline |
| Samsung Life Insurance |
| Iljin Display |
Samsung Life and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Iljin Display
The main advantage of trading using opposite Samsung Life and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Samsung Life vs. BNK Financial Group | Samsung Life vs. CJ Seafood Corp | Samsung Life vs. Lotte Non Life Insurance | Samsung Life vs. Hana Financial |
| Iljin Display vs. Sempio Foods Co | Iljin Display vs. FOODWELL Co | Iljin Display vs. Samsung Life Insurance | Iljin Display vs. Jeju Bank |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |