Correlation Between Samsung Life and Union Materials
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Union Materials 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 Union Materials 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 Union Materials Corp, you can compare the effects of market volatilities on Samsung Life and Union Materials 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 Union Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Union Materials.
Diversification Opportunities for Samsung Life and Union Materials
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and Union is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Union Materials Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Materials Corp 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 Union Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Materials Corp has no effect on the direction of Samsung Life i.e., Samsung Life and Union Materials go up and down completely randomly.
Pair Corralation between Samsung Life and Union Materials
Assuming the 90 days trading horizon Samsung Life Insurance is expected to under-perform the Union Materials. In addition to that, Samsung Life is 1.17 times more volatile than Union Materials Corp. It trades about -0.04 of its total potential returns per unit of risk. Union Materials Corp is currently generating about 0.01 per unit of volatility. If you would invest 220,500 in Union Materials Corp on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Union Materials Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. Union Materials Corp
Performance |
| Timeline |
| Samsung Life Insurance |
| Union Materials Corp |
Samsung Life and Union Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Union Materials
The main advantage of trading using opposite Samsung Life and Union Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Union Materials 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 Union Materials will offset losses from the drop in Union Materials' long position.| Samsung Life vs. Seoul Electronics Telecom | Samsung Life vs. Daejoo Electronic Materials | Samsung Life vs. Lotte Data Communication | Samsung Life vs. Mobileleader CoLtd |
| Union Materials vs. DB Financial Investment | Union Materials vs. Dongbu Insurance Co | Union Materials vs. Hana Financial | Union Materials vs. Industrial 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |