Correlation Between Raontech and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Raontech 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 Raontech and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raontech and Samsung Life Insurance, you can compare the effects of market volatilities on Raontech 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 Raontech with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raontech and Samsung Life.
Diversification Opportunities for Raontech and Samsung Life
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Raontech and Samsung is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Raontech 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 Raontech 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 Raontech 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 Raontech i.e., Raontech and Samsung Life go up and down completely randomly.
Pair Corralation between Raontech and Samsung Life
Assuming the 90 days trading horizon Raontech is expected to generate 2.04 times more return on investment than Samsung Life. However, Raontech is 2.04 times more volatile than Samsung Life Insurance. It trades about 0.3 of its potential returns per unit of risk. Samsung Life Insurance is currently generating about -0.11 per unit of risk. If you would invest 314,000 in Raontech on October 15, 2024 and sell it today you would earn a total of 73,500 from holding Raontech or generate 23.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raontech vs. Samsung Life Insurance
Performance |
| Timeline |
| Raontech |
| Samsung Life Insurance |
Raontech and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raontech and Samsung Life
The main advantage of trading using opposite Raontech and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raontech 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.| Raontech vs. Cheryong Industrial CoLtd | Raontech vs. Daiyang Metal Co | Raontech vs. Dongil Metal Co | Raontech vs. Mgame Corp |
| Samsung Life vs. N2Tech Co | Samsung Life vs. Raontech | Samsung Life vs. CU Medical Systems | Samsung Life vs. Nice Information Telecommunication |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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