Correlation Between Green Cross and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Green Cross 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 Green Cross and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Cross Medical and Samsung Life Insurance, you can compare the effects of market volatilities on Green Cross 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 Green Cross with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cross and Samsung Life.
Diversification Opportunities for Green Cross and Samsung Life
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Green and Samsung is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Green Cross Medical 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 Green Cross 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 Green Cross Medical 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 Green Cross i.e., Green Cross and Samsung Life go up and down completely randomly.
Pair Corralation between Green Cross and Samsung Life
Assuming the 90 days trading horizon Green Cross Medical is expected to under-perform the Samsung Life. In addition to that, Green Cross is 1.51 times more volatile than Samsung Life Insurance. It trades about -0.02 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 6,764,681 in Samsung Life Insurance on September 3, 2024 and sell it today you would earn a total of 3,945,319 from holding Samsung Life Insurance or generate 58.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Cross Medical vs. Samsung Life Insurance
Performance |
| Timeline |
| Green Cross Medical |
| Samsung Life Insurance |
Green Cross and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cross and Samsung Life
The main advantage of trading using opposite Green Cross and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cross 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.| Green Cross vs. Samsung Card Co | Green Cross vs. EBEST Investment Securities | Green Cross vs. Koh Young Technology | Green Cross vs. Hansol Chemica |
| Samsung Life vs. AptaBio Therapeutics | Samsung Life vs. Daewoo SBI SPAC | Samsung Life vs. Dream Security co | Samsung Life vs. Microfriend |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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