Correlation Between Samsung Life and TS Investment
Can any of the company-specific risk be diversified away by investing in both Samsung Life and TS Investment 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 TS Investment 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 TS Investment Corp, you can compare the effects of market volatilities on Samsung Life and TS Investment 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 TS Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and TS Investment.
Diversification Opportunities for Samsung Life and TS Investment
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and 246690 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and TS Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Investment Corp 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 TS Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Investment Corp has no effect on the direction of Samsung Life i.e., Samsung Life and TS Investment go up and down completely randomly.
Pair Corralation between Samsung Life and TS Investment
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 1.31 times more return on investment than TS Investment. However, Samsung Life is 1.31 times more volatile than TS Investment Corp. It trades about 0.07 of its potential returns per unit of risk. TS Investment Corp is currently generating about -0.08 per unit of risk. If you would invest 6,559,289 in Samsung Life Insurance on August 31, 2024 and sell it today you would earn a total of 4,150,711 from holding Samsung Life Insurance or generate 63.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Samsung Life Insurance vs. TS Investment Corp
Performance |
| Timeline |
| Samsung Life Insurance |
| TS Investment Corp |
Samsung Life and TS Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and TS Investment
The main advantage of trading using opposite Samsung Life and TS Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, TS Investment 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 TS Investment will offset losses from the drop in TS Investment's long position.| Samsung Life vs. BNK Financial Group | Samsung Life vs. CJ Seafood Corp | Samsung Life vs. Lotte Non Life Insurance | Samsung Life vs. Hana Financial |
| TS Investment vs. Samsung Electronics Co | TS Investment vs. Samsung Electronics Co | TS Investment vs. LG Energy Solution | TS Investment vs. SK Hynix |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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