Correlation Between Samsung Electronics and Hansol Homedeco
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Hansol Homedeco 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 Hansol Homedeco 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 Hansol Homedeco Co, you can compare the effects of market volatilities on Samsung Electronics and Hansol Homedeco 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 Hansol Homedeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Hansol Homedeco.
Diversification Opportunities for Samsung Electronics and Hansol Homedeco
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Hansol is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Hansol Homedeco Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Homedeco 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 Hansol Homedeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Homedeco has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Hansol Homedeco go up and down completely randomly.
Pair Corralation between Samsung Electronics and Hansol Homedeco
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.21 times more return on investment than Hansol Homedeco. However, Samsung Electronics is 1.21 times more volatile than Hansol Homedeco Co. It trades about 0.04 of its potential returns per unit of risk. Hansol Homedeco Co is currently generating about -0.08 per unit of risk. If you would invest 5,300,000 in Samsung Electronics Co on September 13, 2024 and sell it today you would earn a total of 100,000 from holding Samsung Electronics Co or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Hansol Homedeco Co
Performance |
| Timeline |
| Samsung Electronics |
| Hansol Homedeco |
Samsung Electronics and Hansol Homedeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Hansol Homedeco
The main advantage of trading using opposite Samsung Electronics and Hansol Homedeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Hansol Homedeco 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 Hansol Homedeco will offset losses from the drop in Hansol Homedeco's long position.| Samsung Electronics vs. Korea Air Svc | Samsung Electronics vs. Display Tech Co | Samsung Electronics vs. PLAYWITH | Samsung Electronics vs. Chorokbaem Healthcare Co |
| Hansol Homedeco vs. Samsung Electronics Co | Hansol Homedeco vs. Samsung Electronics Co | Hansol Homedeco vs. SK Hynix | Hansol Homedeco vs. POSCO Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |