Correlation Between Sungchang Autotech and Samsung Life
Can any of the company-specific risk be diversified away by investing in both Sungchang Autotech 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 Sungchang Autotech and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungchang Autotech Co and Samsung Life, you can compare the effects of market volatilities on Sungchang Autotech 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 Sungchang Autotech with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungchang Autotech and Samsung Life.
Diversification Opportunities for Sungchang Autotech and Samsung Life
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sungchang and Samsung is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sungchang Autotech Co and Samsung Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life and Sungchang Autotech 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 Sungchang Autotech 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 has no effect on the direction of Sungchang Autotech i.e., Sungchang Autotech and Samsung Life go up and down completely randomly.
Pair Corralation between Sungchang Autotech and Samsung Life
Assuming the 90 days trading horizon Sungchang Autotech Co is expected to under-perform the Samsung Life. But the stock apears to be less risky and, when comparing its historical volatility, Sungchang Autotech Co is 1.23 times less risky than Samsung Life. The stock trades about -0.04 of its potential returns per unit of risk. The Samsung Life is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,190,000 in Samsung Life on September 26, 2024 and sell it today you would earn a total of 3,070,000 from holding Samsung Life or generate 42.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sungchang Autotech Co vs. Samsung Life
Performance |
Timeline |
Sungchang Autotech |
Samsung Life |
Sungchang Autotech and Samsung Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sungchang Autotech and Samsung Life
The main advantage of trading using opposite Sungchang Autotech and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungchang Autotech 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.Sungchang Autotech vs. Woori Technology Investment | Sungchang Autotech vs. Samsung Card Co | Sungchang Autotech vs. Korea Real Estate | Sungchang Autotech vs. CHOROKBAEM PANY Co |
Samsung Life vs. Sungchang Autotech Co | Samsung Life vs. Vitzro Tech Co | Samsung Life vs. Hankook Furniture Co | Samsung Life vs. Sewoon Medical 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |