Correlation Between Heungkuk Metaltech and Samsung Life

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Heungkuk Metaltech 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 Heungkuk Metaltech and Samsung Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heungkuk Metaltech CoLtd and Samsung Life, you can compare the effects of market volatilities on Heungkuk Metaltech 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 Heungkuk Metaltech with a short position of Samsung Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heungkuk Metaltech and Samsung Life.

Diversification Opportunities for Heungkuk Metaltech and Samsung Life

-0.07
  Correlation Coefficient

Good diversification

The 3 months correlation between Heungkuk and Samsung is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Heungkuk Metaltech CoLtd and Samsung Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Life and Heungkuk Metaltech 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 Heungkuk Metaltech CoLtd 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 Heungkuk Metaltech i.e., Heungkuk Metaltech and Samsung Life go up and down completely randomly.

Pair Corralation between Heungkuk Metaltech and Samsung Life

Assuming the 90 days trading horizon Heungkuk Metaltech CoLtd is expected to under-perform the Samsung Life. But the stock apears to be less risky and, when comparing its historical volatility, Heungkuk Metaltech CoLtd is 1.27 times less risky than Samsung Life. The stock trades about -0.01 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  8,700,000  in Samsung Life on September 19, 2024 and sell it today you would earn a total of  1,300,000  from holding Samsung Life or generate 14.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.18%
ValuesDaily Returns

Heungkuk Metaltech CoLtd  vs.  Samsung Life

 Performance 
       Timeline  
Heungkuk Metaltech CoLtd 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Heungkuk Metaltech CoLtd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Heungkuk Metaltech may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Samsung Life 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Samsung Life has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Samsung Life is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Heungkuk Metaltech and Samsung Life Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Heungkuk Metaltech and Samsung Life

The main advantage of trading using opposite Heungkuk Metaltech and Samsung Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heungkuk Metaltech 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.
The idea behind Heungkuk Metaltech CoLtd and Samsung Life pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account