Correlation Between Samsung Life and MITECH CoLtd

Can any of the company-specific risk be diversified away by investing in both Samsung Life and MITECH CoLtd 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 Samsung Life and MITECH CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Samsung Life Insurance and MITECH CoLtd, you can compare the effects of market volatilities on Samsung Life and MITECH CoLtd 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 Samsung Life with a short position of MITECH CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Life and MITECH CoLtd.

Diversification Opportunities for Samsung Life and MITECH CoLtd

0.0

Correlation Coefficient

Samsung Life  MITECH CoLtd

Pay attention - limited upside

The 3 months correlation between Samsung and MITECH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Life Insurance and MITECH CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MITECH CoLtd and Samsung Life 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 Samsung Life Insurance are associated (or correlated) with MITECH CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MITECH CoLtd has no effect on the direction of Samsung Life i.e., Samsung Life and MITECH CoLtd go up and down completely randomly.

Pair Corralation between Samsung Life and MITECH CoLtd

If you would invest  0.00  in MITECH CoLtd on October 23, 2024 and sell it today you would earn a total of  0.00  from holding MITECH CoLtd or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Samsung Life Insurance  vs.  MITECH CoLtd

Samsung Life Insurance

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samsung Life Insurance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

MITECH CoLtd

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Samsung Life and MITECH CoLtd

The main advantage of trading using opposite Samsung Life and MITECH CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Life position performs unexpectedly, MITECH CoLtd 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 MITECH CoLtd will offset losses from the drop in MITECH CoLtd's long position.

The idea behind Samsung Life Insurance and MITECH CoLtd 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.