Correlation Between Innometry and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Innometry 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 Innometry and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innometry Co and Samsung Life Insurance, you can compare the effects of market volatilities on Innometry 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 Innometry with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innometry and Samsung Life.
Diversification Opportunities for Innometry and Samsung Life
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Innometry and Samsung is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Innometry 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 Innometry 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 Innometry 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 Innometry i.e., Innometry and Samsung Life go up and down completely randomly.
Pair Corralation between Innometry and Samsung Life
Assuming the 90 days trading horizon Innometry Co is expected to under-perform the Samsung Life. But the stock apears to be less risky and, when comparing its historical volatility, Innometry Co is 1.25 times less risky than Samsung Life. The stock trades about -0.21 of its potential returns per unit of risk. The Samsung Life Insurance is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10,250,000 in Samsung Life Insurance on August 29, 2024 and sell it today you would earn a total of 210,000 from holding Samsung Life Insurance or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innometry Co vs. Samsung Life Insurance
Performance |
| Timeline |
| Innometry |
| Samsung Life Insurance |
Innometry and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innometry and Samsung Life
The main advantage of trading using opposite Innometry and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innometry 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.| Innometry vs. Daejoo Electronic Materials | Innometry vs. Parksystems Corp | Innometry vs. BH Co | Innometry vs. Partron Co |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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