Correlation Between Osang Healthcare and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Osang Healthcare 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 Osang Healthcare and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osang Healthcare Co,Ltd and Samsung Life Insurance, you can compare the effects of market volatilities on Osang Healthcare 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 Osang Healthcare with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osang Healthcare and Samsung Life.
Diversification Opportunities for Osang Healthcare and Samsung Life
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Osang and Samsung is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Osang Healthcare Co,Ltd 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 Osang Healthcare 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 Osang Healthcare Co,Ltd 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 Osang Healthcare i.e., Osang Healthcare and Samsung Life go up and down completely randomly.
Pair Corralation between Osang Healthcare and Samsung Life
Assuming the 90 days trading horizon Osang Healthcare Co,Ltd is expected to under-perform the Samsung Life. But the stock apears to be less risky and, when comparing its historical volatility, Osang Healthcare Co,Ltd is 1.32 times less risky than Samsung Life. The stock trades about -0.28 of its potential returns per unit of risk. The Samsung Life Insurance is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10,150,000 in Samsung Life Insurance on September 1, 2024 and sell it today you would earn a total of 560,000 from holding Samsung Life Insurance or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Osang Healthcare Co,Ltd vs. Samsung Life Insurance
Performance |
| Timeline |
| Osang Healthcare Co,Ltd |
| Samsung Life Insurance |
Osang Healthcare and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osang Healthcare and Samsung Life
The main advantage of trading using opposite Osang Healthcare and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osang Healthcare 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.| Osang Healthcare vs. Samsung Electronics Co | Osang Healthcare vs. Samsung Electronics Co | Osang Healthcare vs. LG Energy Solution | Osang Healthcare vs. SK Hynix |
| Samsung Life vs. Shinil Electronics Co | Samsung Life vs. Daeduck Electronics Co | Samsung Life vs. KyungIn Electronics Co | Samsung Life vs. PLAYWITH |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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