Correlation Between Samsung Life and Mgame Corp
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Mgame Corp 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 Mgame Corp 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 Mgame Corp, you can compare the effects of market volatilities on Samsung Life and Mgame Corp 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 Mgame Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Mgame Corp.
Diversification Opportunities for Samsung Life and Mgame Corp
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samsung and Mgame is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Mgame Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mgame 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 Mgame Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mgame Corp has no effect on the direction of Samsung Life i.e., Samsung Life and Mgame Corp go up and down completely randomly.
Pair Corralation between Samsung Life and Mgame Corp
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 1.56 times more return on investment than Mgame Corp. However, Samsung Life is 1.56 times more volatile than Mgame Corp. It trades about -0.13 of its potential returns per unit of risk. Mgame Corp is currently generating about -0.28 per unit of risk. If you would invest 9,880,000 in Samsung Life Insurance on October 14, 2024 and sell it today you would lose (490,000) from holding Samsung Life Insurance or give up 4.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. Mgame Corp
Performance |
| Timeline |
| Samsung Life Insurance |
| Mgame Corp |
Samsung Life and Mgame Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Mgame Corp
The main advantage of trading using opposite Samsung Life and Mgame Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Mgame Corp 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 Mgame Corp will offset losses from the drop in Mgame Corp's long position.| Samsung Life vs. N2Tech Co | Samsung Life vs. Raontech | Samsung Life vs. CU Medical Systems | Samsung Life vs. Nice Information Telecommunication |
| Mgame Corp vs. ABOV Semiconductor Co | Mgame Corp vs. Kakao Games Corp | Mgame Corp vs. Samsung Life Insurance | Mgame Corp vs. Daesung Industrial 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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