Correlation Between Samsung Life and Sejong Telecom
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Sejong Telecom 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 Sejong Telecom 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 Sejong Telecom, you can compare the effects of market volatilities on Samsung Life and Sejong Telecom 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 Sejong Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Sejong Telecom.
Diversification Opportunities for Samsung Life and Sejong Telecom
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Sejong is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Sejong Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sejong Telecom 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 Sejong Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sejong Telecom has no effect on the direction of Samsung Life i.e., Samsung Life and Sejong Telecom go up and down completely randomly.
Pair Corralation between Samsung Life and Sejong Telecom
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 1.93 times more return on investment than Sejong Telecom. However, Samsung Life is 1.93 times more volatile than Sejong Telecom. It trades about 0.09 of its potential returns per unit of risk. Sejong Telecom is currently generating about -0.21 per unit of risk. If you would invest 8,460,000 in Samsung Life Insurance on August 25, 2024 and sell it today you would earn a total of 2,190,000 from holding Samsung Life Insurance or generate 25.89% 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. Sejong Telecom
Performance |
| Timeline |
| Samsung Life Insurance |
| Sejong Telecom |
Samsung Life and Sejong Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Sejong Telecom
The main advantage of trading using opposite Samsung Life and Sejong Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Sejong Telecom 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 Sejong Telecom will offset losses from the drop in Sejong Telecom's long position.| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life vs. Microfriend |
| Sejong Telecom vs. Sam Chun Dang | Sejong Telecom vs. SAMRYOONG CoLtd | Sejong Telecom vs. BYON Co | Sejong Telecom vs. Sangsangin 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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