Correlation Between A Tech and Samsung Life
Can any of the company-specific risk be diversified away by investing in both A Tech 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 A Tech and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A Tech Solution Co and Samsung Life, you can compare the effects of market volatilities on A Tech 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 A Tech with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of A Tech and Samsung Life.
Diversification Opportunities for A Tech and Samsung Life
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between 071670 and Samsung is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding A Tech Solution Co and Samsung Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life and A Tech 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 A Tech Solution 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 A Tech i.e., A Tech and Samsung Life go up and down completely randomly.
Pair Corralation between A Tech and Samsung Life
Assuming the 90 days trading horizon A Tech is expected to generate 2.87 times less return on investment than Samsung Life. In addition to that, A Tech is 1.04 times more volatile than Samsung Life. It trades about 0.01 of its total potential returns per unit of risk. Samsung Life is currently generating about 0.03 per unit of volatility. If you would invest 8,400,000 in Samsung Life on November 3, 2024 and sell it today you would earn a total of 510,000 from holding Samsung Life or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
A Tech Solution Co vs. Samsung Life
Performance |
| Timeline |
| A Tech Solution |
| Samsung Life |
A Tech and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A Tech and Samsung Life
The main advantage of trading using opposite A Tech and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A Tech 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.| A Tech vs. Samsung Card Co | A Tech vs. EBEST Investment Securities | A Tech vs. Koh Young Technology | A Tech vs. Hansol Chemica |
| Samsung Life vs. Sempio Foods Co | Samsung Life vs. Atinum Investment Co | Samsung Life vs. Woori Technology Investment | Samsung Life vs. Samyang Foods 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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