Correlation Between Samsung Life and Ssangyong Materials
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Ssangyong 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 Ssangyong 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 Ssangyong Materials Corp, you can compare the effects of market volatilities on Samsung Life and Ssangyong 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 Ssangyong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Ssangyong Materials.
Diversification Opportunities for Samsung Life and Ssangyong Materials
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and Ssangyong is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Ssangyong Materials Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong 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 Ssangyong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Materials Corp has no effect on the direction of Samsung Life i.e., Samsung Life and Ssangyong Materials go up and down completely randomly.
Pair Corralation between Samsung Life and Ssangyong Materials
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 1.02 times more return on investment than Ssangyong Materials. However, Samsung Life is 1.02 times more volatile than Ssangyong Materials Corp. It trades about 0.04 of its potential returns per unit of risk. Ssangyong Materials Corp is currently generating about -0.02 per unit of risk. If you would invest 6,930,000 in Samsung Life Insurance on October 27, 2024 and sell it today you would earn a total of 1,190,000 from holding Samsung Life Insurance or generate 17.17% 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. Ssangyong Materials Corp
Performance |
| Timeline |
| Samsung Life Insurance |
| Ssangyong Materials Corp |
Samsung Life and Ssangyong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Ssangyong Materials
The main advantage of trading using opposite Samsung Life and Ssangyong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Ssangyong 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 Ssangyong Materials will offset losses from the drop in Ssangyong Materials' long position.| Samsung Life vs. Nature and Environment | Samsung Life vs. Korea Steel Co | Samsung Life vs. People Technology | Samsung Life vs. Eagle Veterinary Technology |
| Ssangyong Materials vs. KB Financial Group | Ssangyong Materials vs. Shinhan Financial Group | Ssangyong Materials vs. Hana Financial | Ssangyong Materials vs. Woori Financial Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |