Correlation Between Samsung Life and IFamilySC
Can any of the company-specific risk be diversified away by investing in both Samsung Life and IFamilySC 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 IFamilySC 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 iFamilySC Co, you can compare the effects of market volatilities on Samsung Life and IFamilySC 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 IFamilySC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and IFamilySC.
Diversification Opportunities for Samsung Life and IFamilySC
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and IFamilySC is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and iFamilySC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iFamilySC 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 IFamilySC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iFamilySC has no effect on the direction of Samsung Life i.e., Samsung Life and IFamilySC go up and down completely randomly.
Pair Corralation between Samsung Life and IFamilySC
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 0.64 times more return on investment than IFamilySC. However, Samsung Life Insurance is 1.56 times less risky than IFamilySC. It trades about 0.08 of its potential returns per unit of risk. iFamilySC Co is currently generating about -0.1 per unit of risk. If you would invest 9,720,000 in Samsung Life Insurance on September 2, 2024 and sell it today you would earn a total of 990,000 from holding Samsung Life Insurance or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. iFamilySC Co
Performance |
| Timeline |
| Samsung Life Insurance |
| iFamilySC |
Samsung Life and IFamilySC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and IFamilySC
The main advantage of trading using opposite Samsung Life and IFamilySC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, IFamilySC 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 IFamilySC will offset losses from the drop in IFamilySC's long position.| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life vs. Microfriend |
| IFamilySC vs. Daedong Metals Co | IFamilySC vs. Dongwon Metal Co | IFamilySC vs. Shinsegae Information Communication | IFamilySC vs. Polaris Office Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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