Correlation Between Jeong Moon and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Jeong Moon and Samsung Life 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 Jeong Moon and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeong Moon Information and Samsung Life Insurance, you can compare the effects of market volatilities on Jeong Moon and Samsung Life 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 Jeong Moon with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeong Moon and Samsung Life.
Diversification Opportunities for Jeong Moon and Samsung Life
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jeong and Samsung is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jeong Moon Information and Samsung Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life Insurance and Jeong Moon 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 Jeong Moon Information are associated (or correlated) with Samsung Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Life Insurance has no effect on the direction of Jeong Moon i.e., Jeong Moon and Samsung Life go up and down completely randomly.
Pair Corralation between Jeong Moon and Samsung Life
Assuming the 90 days trading horizon Jeong Moon Information is expected to under-perform the Samsung Life. But the stock apears to be less risky and, when comparing its historical volatility, Jeong Moon Information is 1.23 times less risky than Samsung Life. The stock trades about -0.05 of its potential returns per unit of risk. The Samsung Life Insurance is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,329,138 in Samsung Life Insurance on September 12, 2024 and sell it today you would earn a total of 3,720,862 from holding Samsung Life Insurance or generate 58.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeong Moon Information vs. Samsung Life Insurance
Performance |
| Timeline |
| Jeong Moon Information |
| Samsung Life Insurance |
Jeong Moon and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeong Moon and Samsung Life
The main advantage of trading using opposite Jeong Moon and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeong Moon position performs unexpectedly, Samsung Life 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 Samsung Life will offset losses from the drop in Samsung Life's long position.| Jeong Moon vs. ECSTELECOM Co | Jeong Moon vs. Korean Air Lines | Jeong Moon vs. Tway Air Co | Jeong Moon vs. Ssangyong Information Communication |
| Samsung Life vs. PI Advanced Materials | Samsung Life vs. Jeong Moon Information | Samsung Life vs. InnoTherapy | Samsung Life vs. Hana Materials |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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