Correlation Between Samsung Life and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Infinitt Healthcare 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 Infinitt Healthcare 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 Infinitt Healthcare Co, you can compare the effects of market volatilities on Samsung Life and Infinitt Healthcare 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 Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Infinitt Healthcare.
Diversification Opportunities for Samsung Life and Infinitt Healthcare
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samsung and Infinitt is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare 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 Infinitt Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinitt Healthcare has no effect on the direction of Samsung Life i.e., Samsung Life and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between Samsung Life and Infinitt Healthcare
Assuming the 90 days trading horizon Samsung Life is expected to generate 2.25 times less return on investment than Infinitt Healthcare. In addition to that, Samsung Life is 1.68 times more volatile than Infinitt Healthcare Co. It trades about 0.04 of its total potential returns per unit of risk. Infinitt Healthcare Co is currently generating about 0.16 per unit of volatility. If you would invest 434,000 in Infinitt Healthcare Co on August 29, 2024 and sell it today you would earn a total of 28,000 from holding Infinitt Healthcare Co or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. Infinitt Healthcare Co
Performance |
| Timeline |
| Samsung Life Insurance |
| Infinitt Healthcare |
Samsung Life and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Infinitt Healthcare
The main advantage of trading using opposite Samsung Life and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Infinitt Healthcare 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 Infinitt Healthcare will offset losses from the drop in Infinitt Healthcare's long position.| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life vs. Microfriend |
| Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Daewoo SBI SPAC | Infinitt Healthcare vs. Dream Security co | Infinitt Healthcare vs. Microfriend |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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