Correlation Between Samsung Life and Mobileleader CoLtd
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Mobileleader CoLtd 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 Mobileleader CoLtd 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 Mobileleader CoLtd, you can compare the effects of market volatilities on Samsung Life and Mobileleader CoLtd 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 Mobileleader CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Mobileleader CoLtd.
Diversification Opportunities for Samsung Life and Mobileleader CoLtd
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Mobileleader is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Mobileleader CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobileleader 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 Mobileleader CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobileleader CoLtd has no effect on the direction of Samsung Life i.e., Samsung Life and Mobileleader CoLtd go up and down completely randomly.
Pair Corralation between Samsung Life and Mobileleader CoLtd
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 0.92 times more return on investment than Mobileleader CoLtd. However, Samsung Life Insurance is 1.09 times less risky than Mobileleader CoLtd. It trades about 0.1 of its potential returns per unit of risk. Mobileleader CoLtd is currently generating about 0.05 per unit of risk. If you would invest 10,060,000 in Samsung Life Insurance on August 25, 2024 and sell it today you would earn a total of 590,000 from holding Samsung Life Insurance or generate 5.86% 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. Mobileleader CoLtd
Performance |
| Timeline |
| Samsung Life Insurance |
| Mobileleader CoLtd |
Samsung Life and Mobileleader CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Mobileleader CoLtd
The main advantage of trading using opposite Samsung Life and Mobileleader CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Mobileleader CoLtd 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 Mobileleader CoLtd will offset losses from the drop in Mobileleader CoLtd's long position.| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life vs. Microfriend |
| Mobileleader CoLtd vs. Korea Real Estate | Mobileleader CoLtd vs. Korea Ratings Co | Mobileleader CoLtd vs. IQuest Co | Mobileleader CoLtd vs. Wonbang Tech 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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