Correlation Between Samsung Life and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Atinum Investment 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 Atinum Investment 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 Atinum Investment Co, you can compare the effects of market volatilities on Samsung Life and Atinum Investment 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 Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Atinum Investment.
Diversification Opportunities for Samsung Life and Atinum Investment
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samsung and Atinum is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum 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 Atinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atinum Investment has no effect on the direction of Samsung Life i.e., Samsung Life and Atinum Investment go up and down completely randomly.
Pair Corralation between Samsung Life and Atinum Investment
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 1.02 times more return on investment than Atinum Investment. However, Samsung Life is 1.02 times more volatile than Atinum Investment Co. It trades about -0.02 of its potential returns per unit of risk. Atinum Investment Co is currently generating about -0.26 per unit of risk. If you would invest 10,340,000 in Samsung Life Insurance on September 12, 2024 and sell it today you would lose (290,000) from holding Samsung Life Insurance or give up 2.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. Atinum Investment Co
Performance |
| Timeline |
| Samsung Life Insurance |
| Atinum Investment |
Samsung Life and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Atinum Investment
The main advantage of trading using opposite Samsung Life and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Atinum Investment 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 Atinum Investment will offset losses from the drop in Atinum Investment's long position.| Samsung Life vs. PI Advanced Materials | Samsung Life vs. Jeong Moon Information | Samsung Life vs. InnoTherapy | Samsung Life vs. Hana Materials |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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