Correlation Between Samsung Life and Sempio Foods
Can any of the company-specific risk be diversified away by investing in both Samsung Life and Sempio Foods 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 Sempio Foods 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 Sempio Foods Co, you can compare the effects of market volatilities on Samsung Life and Sempio Foods 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 Sempio Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and Sempio Foods.
Diversification Opportunities for Samsung Life and Sempio Foods
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Sempio is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and Sempio Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sempio Foods 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 Sempio Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sempio Foods has no effect on the direction of Samsung Life i.e., Samsung Life and Sempio Foods go up and down completely randomly.
Pair Corralation between Samsung Life and Sempio Foods
Assuming the 90 days trading horizon Samsung Life Insurance is expected to generate 1.15 times more return on investment than Sempio Foods. However, Samsung Life is 1.15 times more volatile than Sempio Foods Co. It trades about 0.04 of its potential returns per unit of risk. Sempio Foods Co is currently generating about -0.08 per unit of risk. If you would invest 9,270,000 in Samsung Life Insurance on September 21, 2024 and sell it today you would earn a total of 580,000 from holding Samsung Life Insurance or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Life Insurance vs. Sempio Foods Co
Performance |
| Timeline |
| Samsung Life Insurance |
| Sempio Foods |
Samsung Life and Sempio Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and Sempio Foods
The main advantage of trading using opposite Samsung Life and Sempio Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, Sempio Foods 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 Sempio Foods will offset losses from the drop in Sempio Foods' long position.| Samsung Life vs. Youngsin Metal Industrial | Samsung Life vs. Seoul Food Industrial | Samsung Life vs. HB Technology TD | Samsung Life vs. Songwon Industrial Co |
| Sempio Foods vs. Camus Engineering Construction | Sempio Foods vs. Dongbu Insurance Co | Sempio Foods vs. KakaoBank Corp | Sempio Foods vs. Samsung Life Insurance |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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