Correlation Between Samsung Life and Bookook Steel
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Bookook Steel 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 Bookook Steel 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 Bookook Steel, you can compare the effects of market volatilities on Samsung Life and Bookook Steel 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 Bookook Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Bookook Steel.
Diversification Opportunities for Samsung Life and Bookook Steel
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Bookook is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Bookook Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bookook Steel 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 Bookook Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bookook Steel has no effect on the direction of Samsung Life i.e., Samsung Life and Bookook Steel go up and down completely randomly.
Pair Corralation between Samsung Life and Bookook Steel
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 0.74 times more return on investment than Bookook Steel. However, Samsung Life Insurance is 1.35 times less risky than Bookook Steel. It trades about 0.06 of its potential returns per unit of risk. Bookook Steel is currently generating about -0.01 per unit of risk. If you would invest 6,764,681 in Samsung Life Insurance on September 3, 2024 and sell it today you would earn a total of 3,945,319 from holding Samsung Life Insurance or generate 58.32% 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. Bookook Steel
Performance |
| Timeline |
| Samsung Life Insurance |
| Bookook Steel |
Samsung Life and Bookook Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Bookook Steel
The main advantage of trading using opposite Samsung Life and Bookook Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Bookook Steel 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 Bookook Steel will offset losses from the drop in Bookook Steel's long position.| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life vs. Microfriend |
| Bookook Steel vs. Seah Steel Corp | Bookook Steel vs. Ni Steel | Bookook Steel vs. Korea Steel Co | Bookook Steel vs. Finebesteel |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |