Correlation Between Samsung Life and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Aprogen 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 Aprogen 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 Aprogen Healthcare Games, you can compare the effects of market volatilities on Samsung Life and Aprogen 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 Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Aprogen Healthcare.
Diversification Opportunities for Samsung Life and Aprogen Healthcare
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Aprogen is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Aprogen Healthcare Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen Healthcare Games 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 Aprogen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen Healthcare Games has no effect on the direction of Samsung Life i.e., Samsung Life and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Samsung Life and Aprogen Healthcare
Assuming the 90 days trading horizon Samsung Life Insurance is expected to under-perform the Aprogen Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Life Insurance is 2.66 times less risky than Aprogen Healthcare. The stock trades about -0.12 of its potential returns per unit of risk. The Aprogen Healthcare Games is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 44,700 in Aprogen Healthcare Games on October 10, 2024 and sell it today you would earn a total of 6,200 from holding Aprogen Healthcare Games or generate 13.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Samsung Life Insurance |
| Aprogen Healthcare Games |
Samsung Life and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Aprogen Healthcare
The main advantage of trading using opposite Samsung Life and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Aprogen 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 Aprogen Healthcare will offset losses from the drop in Aprogen Healthcare's long position.| Samsung Life vs. Anam Electronics Co | Samsung Life vs. SK Telecom Co | Samsung Life vs. Sungmoon Electronics Co | Samsung Life vs. PlayD 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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