Correlation Between Samsung Electronics and J Steel
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and J Steel 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 J Steel 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 J Steel Co, you can compare the effects of market volatilities on Samsung Electronics and J Steel 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 J Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and J Steel.
Diversification Opportunities for Samsung Electronics and J Steel
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and 023440 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and J Steel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J Steel 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 J Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J Steel has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and J Steel go up and down completely randomly.
Pair Corralation between Samsung Electronics and J Steel
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the J Steel. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 2.13 times less risky than J Steel. The stock trades about -0.05 of its potential returns per unit of risk. The J Steel Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 148,500 in J Steel Co on November 5, 2024 and sell it today you would earn a total of 3,200 from holding J Steel Co or generate 2.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. J Steel Co
Performance |
| Timeline |
| Samsung Electronics |
| J Steel |
Samsung Electronics and J Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and J Steel
The main advantage of trading using opposite Samsung Electronics and J Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, J Steel 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 J Steel will offset losses from the drop in J Steel's long position.| Samsung Electronics vs. Cloud Air CoLtd | Samsung Electronics vs. Jeju Beer Co | Samsung Electronics vs. Air Busan Co | Samsung Electronics vs. Jeju Air Co |
| J Steel vs. KT Submarine Telecom | J Steel vs. Daishin Information Communications | J Steel vs. Seoul Semiconductor Co | J Steel vs. Automobile Pc |
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.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |