Correlation Between Samsung KODEX and Samsung Asset
Can any of the company-specific risk be diversified away by investing in both Samsung KODEX and Samsung Asset 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 Samsung KODEX and Samsung Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung KODEX IT and Samsung Asset Management, you can compare the effects of market volatilities on Samsung KODEX and Samsung Asset 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 Samsung KODEX with a short position of Samsung Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung KODEX and Samsung Asset.
Diversification Opportunities for Samsung KODEX and Samsung Asset
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Samsung is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Samsung KODEX IT and Samsung Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Asset Management and Samsung KODEX 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 Samsung KODEX IT are associated (or correlated) with Samsung Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Asset Management has no effect on the direction of Samsung KODEX i.e., Samsung KODEX and Samsung Asset go up and down completely randomly.
Pair Corralation between Samsung KODEX and Samsung Asset
Assuming the 90 days trading horizon Samsung KODEX IT is expected to under-perform the Samsung Asset. In addition to that, Samsung KODEX is 1.48 times more volatile than Samsung Asset Management. It trades about -0.04 of its total potential returns per unit of risk. Samsung Asset Management is currently generating about 0.08 per unit of volatility. If you would invest 1,274,806 in Samsung Asset Management on September 12, 2024 and sell it today you would earn a total of 410,694 from holding Samsung Asset Management or generate 32.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung KODEX IT vs. Samsung Asset Management
Performance |
| Timeline |
| Samsung KODEX IT |
| Samsung Asset Management |
Samsung KODEX and Samsung Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung KODEX and Samsung Asset
The main advantage of trading using opposite Samsung KODEX and Samsung Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung KODEX position performs unexpectedly, Samsung Asset 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 Asset will offset losses from the drop in Samsung Asset's long position.| Samsung KODEX vs. Busan Industrial Co | Samsung KODEX vs. Busan Ind | Samsung KODEX vs. Shinhan WTI Futures | Samsung KODEX vs. UNISEM Co |
| Samsung Asset vs. Busan Industrial Co | Samsung Asset vs. Busan Ind | Samsung Asset vs. Shinhan WTI Futures | Samsung Asset vs. UNISEM 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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