Correlation Between Samsung Electronics and Samyoung Electronics
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Samyoung 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 Samsung Electronics and Samyoung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Samyoung Electronics Co, you can compare the effects of market volatilities on Samsung Electronics and Samyoung 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 Samsung Electronics with a short position of Samyoung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Samyoung Electronics.
Diversification Opportunities for Samsung Electronics and Samyoung Electronics
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Samyoung is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Samyoung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samyoung Electronics and Samsung Electronics 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 Electronics Co are associated (or correlated) with Samyoung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samyoung Electronics has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Samyoung Electronics go up and down completely randomly.
Pair Corralation between Samsung Electronics and Samyoung Electronics
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Samyoung Electronics. In addition to that, Samsung Electronics is 1.06 times more volatile than Samyoung Electronics Co. It trades about 0.0 of its total potential returns per unit of risk. Samyoung Electronics Co is currently generating about 0.02 per unit of volatility. If you would invest 877,208 in Samyoung Electronics Co on October 7, 2024 and sell it today you would earn a total of 105,792 from holding Samyoung Electronics Co or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Samyoung Electronics Co
Performance |
| Timeline |
| Samsung Electronics |
| Samyoung Electronics |
Samsung Electronics and Samyoung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Samyoung Electronics
The main advantage of trading using opposite Samsung Electronics and Samyoung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Samyoung 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 Samyoung Electronics will offset losses from the drop in Samyoung Electronics' long position.| Samsung Electronics vs. SK Chemicals Co | Samsung Electronics vs. LG Household Healthcare | Samsung Electronics vs. Daol Investment Securities | Samsung Electronics vs. LG Chemicals |
| Samyoung Electronics vs. AptaBio Therapeutics | Samyoung Electronics vs. Daewoo SBI SPAC | Samyoung Electronics vs. Dream Security co | Samyoung Electronics vs. Microfriend |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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