Correlation Between Samlip General and Dongbu Insurance
Can any of the company-specific risk be diversified away by investing in both Samlip General and Dongbu Insurance 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 Samlip General and Dongbu Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samlip General Foods and Dongbu Insurance Co, you can compare the effects of market volatilities on Samlip General and Dongbu Insurance 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 Samlip General with a short position of Dongbu Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samlip General and Dongbu Insurance.
Diversification Opportunities for Samlip General and Dongbu Insurance
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samlip and Dongbu is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Samlip General Foods and Dongbu Insurance Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongbu Insurance and Samlip General 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 Samlip General Foods are associated (or correlated) with Dongbu Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongbu Insurance has no effect on the direction of Samlip General i.e., Samlip General and Dongbu Insurance go up and down completely randomly.
Pair Corralation between Samlip General and Dongbu Insurance
Assuming the 90 days trading horizon Samlip General Foods is expected to generate 0.81 times more return on investment than Dongbu Insurance. However, Samlip General Foods is 1.23 times less risky than Dongbu Insurance. It trades about 0.6 of its potential returns per unit of risk. Dongbu Insurance Co is currently generating about 0.0 per unit of risk. If you would invest 4,370,214 in Samlip General Foods on October 10, 2024 and sell it today you would earn a total of 1,059,786 from holding Samlip General Foods or generate 24.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.0% |
Values | Daily Returns |
Samlip General Foods vs. Dongbu Insurance Co
Performance |
Timeline |
Samlip General Foods |
Dongbu Insurance |
Samlip General and Dongbu Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samlip General and Dongbu Insurance
The main advantage of trading using opposite Samlip General and Dongbu Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samlip General position performs unexpectedly, Dongbu Insurance 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 Dongbu Insurance will offset losses from the drop in Dongbu Insurance's long position.Samlip General vs. Union Materials Corp | Samlip General vs. Samyang Foods Co | Samlip General vs. PI Advanced Materials | Samlip General vs. INNOX Advanced Materials |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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