Correlation Between Echomarketing CoLtd and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Echomarketing CoLtd 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 Echomarketing CoLtd and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Echomarketing CoLtd and Samsung Life, you can compare the effects of market volatilities on Echomarketing CoLtd 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 Echomarketing CoLtd with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Echomarketing CoLtd and Samsung Life.
Diversification Opportunities for Echomarketing CoLtd and Samsung Life
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Echomarketing and Samsung is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Echomarketing CoLtd and Samsung Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life and Echomarketing CoLtd 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 Echomarketing CoLtd 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 Echomarketing CoLtd i.e., Echomarketing CoLtd and Samsung Life go up and down completely randomly.
Pair Corralation between Echomarketing CoLtd and Samsung Life
Assuming the 90 days trading horizon Echomarketing CoLtd is expected to under-perform the Samsung Life. In addition to that, Echomarketing CoLtd is 1.11 times more volatile than Samsung Life. It trades about -0.02 of its total potential returns per unit of risk. Samsung Life is currently generating about 0.04 per unit of volatility. If you would invest 7,159,612 in Samsung Life on September 12, 2024 and sell it today you would earn a total of 2,890,388 from holding Samsung Life or generate 40.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Echomarketing CoLtd vs. Samsung Life
Performance |
| Timeline |
| Echomarketing CoLtd |
| Samsung Life |
Echomarketing CoLtd and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Echomarketing CoLtd and Samsung Life
The main advantage of trading using opposite Echomarketing CoLtd and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Echomarketing CoLtd 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.| Echomarketing CoLtd vs. YG Entertainment | Echomarketing CoLtd vs. JYP Entertainment | Echomarketing CoLtd vs. Cube Entertainment | Echomarketing CoLtd vs. FNC Entertainment Co |
| Samsung Life vs. Innowireless Co | Samsung Life vs. Polaris Office Corp | Samsung Life vs. Hyundai Home Shopping | Samsung Life vs. Echomarketing CoLtd |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |