Correlation Between Samsung Life and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Eugene Technology 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 Eugene Technology 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 Eugene Technology CoLtd, you can compare the effects of market volatilities on Samsung Life and Eugene Technology 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 Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Eugene Technology.
Diversification Opportunities for Samsung Life and Eugene Technology
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Eugene is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd 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 Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of Samsung Life i.e., Samsung Life and Eugene Technology go up and down completely randomly.
Pair Corralation between Samsung Life and Eugene Technology
Assuming the 90 days trading horizon Samsung Life is expected to generate 1.12 times less return on investment than Eugene Technology. But when comparing it to its historical volatility, Samsung Life Insurance is 1.64 times less risky than Eugene Technology. It trades about 0.05 of its potential returns per unit of risk. Eugene Technology CoLtd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,381,456 in Eugene Technology CoLtd on September 2, 2024 and sell it today you would earn a total of 958,544 from holding Eugene Technology CoLtd or generate 40.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. Eugene Technology CoLtd
Performance |
| Timeline |
| Samsung Life Insurance |
| Eugene Technology CoLtd |
Samsung Life and Eugene Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Eugene Technology
The main advantage of trading using opposite Samsung Life and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Eugene Technology 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 Eugene Technology will offset losses from the drop in Eugene Technology's long position.| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life vs. Microfriend |
| Eugene Technology vs. Korea Investment Holdings | Eugene Technology vs. PLAYWITH | Eugene Technology vs. DB Financial Investment | Eugene Technology vs. LB Investment |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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