Correlation Between Samsung Electronics and Hwaseung Industries
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Hwaseung Industries 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 Hwaseung Industries 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 Hwaseung Industries Co, you can compare the effects of market volatilities on Samsung Electronics and Hwaseung Industries 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 Hwaseung Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Hwaseung Industries.
Diversification Opportunities for Samsung Electronics and Hwaseung Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Hwaseung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Hwaseung Industries Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwaseung Industries 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 Hwaseung Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwaseung Industries has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Hwaseung Industries go up and down completely randomly.
Pair Corralation between Samsung Electronics and Hwaseung Industries
If you would invest (100.00) in Hwaseung Industries Co on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Hwaseung Industries Co or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Hwaseung Industries Co
Performance |
| Timeline |
| Samsung Electronics |
| Hwaseung Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Samsung Electronics and Hwaseung Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Hwaseung Industries
The main advantage of trading using opposite Samsung Electronics and Hwaseung Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Hwaseung Industries 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 Hwaseung Industries will offset losses from the drop in Hwaseung Industries' long position.| Samsung Electronics vs. Finebesteel | Samsung Electronics vs. Dongil Metal Co | Samsung Electronics vs. MetaLabs Co | Samsung Electronics vs. Youngsin Metal Industrial |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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