Correlation Between Samsung Life and Shinsung Delta
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Shinsung Delta 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 Shinsung Delta 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 Shinsung Delta Tech, you can compare the effects of market volatilities on Samsung Life and Shinsung Delta 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 Shinsung Delta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Shinsung Delta.
Diversification Opportunities for Samsung Life and Shinsung Delta
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Shinsung is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Shinsung Delta Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsung Delta Tech 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 Shinsung Delta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsung Delta Tech has no effect on the direction of Samsung Life i.e., Samsung Life and Shinsung Delta go up and down completely randomly.
Pair Corralation between Samsung Life and Shinsung Delta
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 1.02 times more return on investment than Shinsung Delta. However, Samsung Life is 1.02 times more volatile than Shinsung Delta Tech. It trades about 0.05 of its potential returns per unit of risk. Shinsung Delta Tech is currently generating about -0.29 per unit of risk. If you would invest 8,910,000 in Samsung Life Insurance on November 27, 2024 and sell it today you would earn a total of 210,000 from holding Samsung Life Insurance or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. Shinsung Delta Tech
Performance |
| Timeline |
| Samsung Life Insurance |
| Shinsung Delta Tech |
Samsung Life and Shinsung Delta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Shinsung Delta
The main advantage of trading using opposite Samsung Life and Shinsung Delta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Shinsung Delta 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 Shinsung Delta will offset losses from the drop in Shinsung Delta's long position.| Samsung Life vs. Grand Korea Leisure | Samsung Life vs. Alton Sports CoLtd | Samsung Life vs. Young Heung Iron | Samsung Life vs. Polaris Office Corp |
| Shinsung Delta vs. Busan Industrial Co | Shinsung Delta vs. Busan Ind | Shinsung Delta vs. Mirae Asset Daewoo | Shinsung Delta vs. UNISEM 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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