Correlation Between Samsung Life and SAMG Entertainment
Can any of the company-specific risk be diversified away by investing in both Samsung Life and SAMG Entertainment 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 SAMG Entertainment 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 SAMG Entertainment Co, you can compare the effects of market volatilities on Samsung Life and SAMG Entertainment 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 SAMG Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and SAMG Entertainment.
Diversification Opportunities for Samsung Life and SAMG Entertainment
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and SAMG is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and SAMG Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMG Entertainment 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 SAMG Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMG Entertainment has no effect on the direction of Samsung Life i.e., Samsung Life and SAMG Entertainment go up and down completely randomly.
Pair Corralation between Samsung Life and SAMG Entertainment
Assuming the 90 days trading horizon Samsung Life Insurance is expected to under-perform the SAMG Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Life Insurance is 1.43 times less risky than SAMG Entertainment. The stock trades about -0.11 of its potential returns per unit of risk. The SAMG Entertainment Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,274,000 in SAMG Entertainment Co on October 11, 2024 and sell it today you would earn a total of 28,000 from holding SAMG Entertainment Co or generate 2.2% 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. SAMG Entertainment Co
Performance |
| Timeline |
| Samsung Life Insurance |
| SAMG Entertainment |
Samsung Life and SAMG Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Life and SAMG Entertainment
The main advantage of trading using opposite Samsung Life and SAMG Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, SAMG Entertainment 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 SAMG Entertainment will offset losses from the drop in SAMG Entertainment's long position.| Samsung Life vs. Sangsin Energy Display | Samsung Life vs. Dongbang Transport Logistics | Samsung Life vs. DONGKUK TED METAL | Samsung Life vs. Kukil Metal Co |
| SAMG Entertainment vs. Solution Advanced Technology | SAMG Entertainment vs. Eagle Veterinary Technology | SAMG Entertainment vs. Chorokbaem Healthcare Co | SAMG Entertainment vs. Lotte Data Communication |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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