Correlation Between ITM Semiconductor and Samsung Life
Can any of the company-specific risk be diversified away by investing in both ITM Semiconductor 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 ITM Semiconductor and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITM Semiconductor Co and Samsung Life Insurance, you can compare the effects of market volatilities on ITM Semiconductor 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 ITM Semiconductor with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITM Semiconductor and Samsung Life.
Diversification Opportunities for ITM Semiconductor and Samsung Life
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ITM and Samsung is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding ITM Semiconductor 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 ITM Semiconductor 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 ITM Semiconductor 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 ITM Semiconductor i.e., ITM Semiconductor and Samsung Life go up and down completely randomly.
Pair Corralation between ITM Semiconductor and Samsung Life
Assuming the 90 days trading horizon ITM Semiconductor Co is expected to under-perform the Samsung Life. But the stock apears to be less risky and, when comparing its historical volatility, ITM Semiconductor Co is 1.26 times less risky than Samsung Life. The stock trades about -0.38 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ITM Semiconductor Co vs. Samsung Life Insurance
Performance |
| Timeline |
| ITM Semiconductor |
| Samsung Life Insurance |
ITM Semiconductor and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ITM Semiconductor and Samsung Life
The main advantage of trading using opposite ITM Semiconductor and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITM Semiconductor 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.| ITM Semiconductor vs. SK Hynix | ITM Semiconductor vs. LX Semicon Co | ITM Semiconductor vs. Tokai Carbon Korea | ITM Semiconductor vs. People Technology |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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