Correlation Between Samsung Life and PLAYWITH
Can any of the company-specific risk be diversified away by investing in both Samsung Life and PLAYWITH 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 PLAYWITH 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 PLAYWITH, you can compare the effects of market volatilities on Samsung Life and PLAYWITH 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 PLAYWITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and PLAYWITH.
Diversification Opportunities for Samsung Life and PLAYWITH
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samsung and PLAYWITH is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and PLAYWITH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWITH 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 PLAYWITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWITH has no effect on the direction of Samsung Life i.e., Samsung Life and PLAYWITH go up and down completely randomly.
Pair Corralation between Samsung Life and PLAYWITH
Assuming the 90 days trading horizon Samsung Life Insurance is expected to under-perform the PLAYWITH. In addition to that, Samsung Life is 1.24 times more volatile than PLAYWITH. It trades about -0.02 of its total potential returns per unit of risk. PLAYWITH is currently generating about 0.39 per unit of volatility. If you would invest 321,000 in PLAYWITH on December 1, 2024 and sell it today you would earn a total of 74,500 from holding PLAYWITH or generate 23.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. PLAYWITH
Performance |
| Timeline |
| Samsung Life Insurance |
| PLAYWITH |
Samsung Life and PLAYWITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and PLAYWITH
The main advantage of trading using opposite Samsung Life and PLAYWITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, PLAYWITH 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 PLAYWITH will offset losses from the drop in PLAYWITH's long position.| Samsung Life vs. PJ Metal Co | Samsung Life vs. Haesung Industrial Co | Samsung Life vs. Hyunwoo Industrial Co | Samsung Life vs. DoubleU Games Co |
| PLAYWITH vs. Cots Technology Co | PLAYWITH vs. ITM Semiconductor Co | PLAYWITH vs. Sangsin Energy Display | PLAYWITH vs. Ssangyong Information Communication |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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