Correlation Between DONGKUK TED and Samsung Life
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED 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 DONGKUK TED and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DONGKUK TED METAL and Samsung Life Insurance, you can compare the effects of market volatilities on DONGKUK TED 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 DONGKUK TED with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and Samsung Life.
Diversification Opportunities for DONGKUK TED and Samsung Life
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between DONGKUK and Samsung is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL 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 DONGKUK TED 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 DONGKUK TED METAL 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 DONGKUK TED i.e., DONGKUK TED and Samsung Life go up and down completely randomly.
Pair Corralation between DONGKUK TED and Samsung Life
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to under-perform the Samsung Life. In addition to that, DONGKUK TED is 1.2 times more volatile than Samsung Life Insurance. It trades about -0.09 of its total potential returns per unit of risk. Samsung Life Insurance is currently generating about 0.03 per unit of volatility. If you would invest 6,415,445 in Samsung Life Insurance on October 26, 2024 and sell it today you would earn a total of 1,704,555 from holding Samsung Life Insurance or generate 26.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.57% |
| Values | Daily Returns |
DONGKUK TED METAL vs. Samsung Life Insurance
Performance |
| Timeline |
| DONGKUK TED METAL |
| Samsung Life Insurance |
DONGKUK TED and Samsung Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and Samsung Life
The main advantage of trading using opposite DONGKUK TED and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED 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.| DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. LG Energy Solution | DONGKUK TED vs. SK Hynix |
| Samsung Life vs. Nature and Environment | Samsung Life vs. Korea Steel Co | Samsung Life vs. People Technology | Samsung Life vs. Eagle Veterinary Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stocks Directory Find actively traded stocks across global markets |