Correlation Between Samjin LND and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Samjin LND 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 Samjin LND and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samjin LND Co and Samsung Life Insurance, you can compare the effects of market volatilities on Samjin LND 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 Samjin LND with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samjin LND and Samsung Life.
Diversification Opportunities for Samjin LND and Samsung Life
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samjin and Samsung is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Samjin LND Co 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 Samjin LND 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 Samjin LND Co 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 Samjin LND i.e., Samjin LND and Samsung Life go up and down completely randomly.
Pair Corralation between Samjin LND and Samsung Life
Assuming the 90 days trading horizon Samjin LND Co is expected to under-perform the Samsung Life. In addition to that, Samjin LND is 1.26 times more volatile than Samsung Life Insurance. It trades about -0.08 of its total potential returns per unit of risk. Samsung Life Insurance is currently generating about 0.06 per unit of volatility. If you would invest 6,801,446 in Samsung Life Insurance on September 1, 2024 and sell it today you would earn a total of 3,908,554 from holding Samsung Life Insurance or generate 57.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Samjin LND Co vs. Samsung Life Insurance
Performance |
| Timeline |
| Samjin LND |
| Samsung Life Insurance |
Samjin LND and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samjin LND and Samsung Life
The main advantage of trading using opposite Samjin LND and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samjin LND 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.| Samjin LND vs. Samsung Life Insurance | Samjin LND vs. Hankuk Steel Wire | Samjin LND vs. Dongil Steel Co | Samjin LND vs. J Steel Co |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |