Correlation Between Kukil Metal and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Kukil Metal 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 Kukil Metal and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kukil Metal Co and Samsung Life, you can compare the effects of market volatilities on Kukil Metal 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 Kukil Metal with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kukil Metal and Samsung Life.
Diversification Opportunities for Kukil Metal and Samsung Life
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kukil and Samsung is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kukil Metal Co and Samsung Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life and Kukil Metal 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 Kukil Metal 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 has no effect on the direction of Kukil Metal i.e., Kukil Metal and Samsung Life go up and down completely randomly.
Pair Corralation between Kukil Metal and Samsung Life
Assuming the 90 days trading horizon Kukil Metal Co is expected to generate 0.67 times more return on investment than Samsung Life. However, Kukil Metal Co is 1.49 times less risky than Samsung Life. It trades about 0.32 of its potential returns per unit of risk. Samsung Life is currently generating about -0.53 per unit of risk. If you would invest 168,527 in Kukil Metal Co on October 24, 2024 and sell it today you would earn a total of 12,073 from holding Kukil Metal Co or generate 7.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kukil Metal Co vs. Samsung Life
Performance |
| Timeline |
| Kukil Metal |
| Samsung Life |
Kukil Metal and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kukil Metal and Samsung Life
The main advantage of trading using opposite Kukil Metal and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kukil Metal 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.| Kukil Metal vs. Neungyule Education | Kukil Metal vs. Sempio Foods Co | Kukil Metal vs. BIT Computer Co | Kukil Metal vs. LG Display Co |
| Samsung Life vs. MediaZen | Samsung Life vs. Kukil Metal Co | Samsung Life vs. Korea Information Communications | Samsung Life vs. SAMG Entertainment Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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