Correlation Between SeAH Besteel and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both SeAH Besteel and Samsung Electronics 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 SeAH Besteel and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SeAH Besteel Corp and Samsung Electronics Co, you can compare the effects of market volatilities on SeAH Besteel and Samsung Electronics 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 SeAH Besteel with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SeAH Besteel and Samsung Electronics.
Diversification Opportunities for SeAH Besteel and Samsung Electronics
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SeAH and Samsung is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SeAH Besteel Corp and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and SeAH Besteel 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 SeAH Besteel Corp are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of SeAH Besteel i.e., SeAH Besteel and Samsung Electronics go up and down completely randomly.
Pair Corralation between SeAH Besteel and Samsung Electronics
Assuming the 90 days trading horizon SeAH Besteel Corp is expected to generate 1.05 times more return on investment than Samsung Electronics. However, SeAH Besteel is 1.05 times more volatile than Samsung Electronics Co. It trades about 0.04 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.18 per unit of risk. If you would invest 1,916,000 in SeAH Besteel Corp on November 7, 2024 and sell it today you would earn a total of 19,000 from holding SeAH Besteel Corp or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SeAH Besteel Corp vs. Samsung Electronics Co
Performance |
| Timeline |
| SeAH Besteel Corp |
| Samsung Electronics |
SeAH Besteel and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SeAH Besteel and Samsung Electronics
The main advantage of trading using opposite SeAH Besteel and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SeAH Besteel position performs unexpectedly, Samsung Electronics 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 Electronics will offset losses from the drop in Samsung Electronics' long position.| SeAH Besteel vs. Automobile Pc | SeAH Besteel vs. Nice Information Telecommunication | SeAH Besteel vs. Nable Communications | SeAH Besteel vs. SEOJEON ELECTRIC MACHINERY |
| Samsung Electronics vs. Hyundai Green Food | Samsung Electronics vs. Samyang Foods Co | Samsung Electronics vs. Finebesteel | Samsung Electronics vs. Husteel |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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