Correlation Between Samsung Electronics and Kginicis CoLtd
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Kginicis CoLtd 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 Kginicis CoLtd 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 Kginicis CoLtd, you can compare the effects of market volatilities on Samsung Electronics and Kginicis CoLtd 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 Kginicis CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Kginicis CoLtd.
Diversification Opportunities for Samsung Electronics and Kginicis CoLtd
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samsung and Kginicis is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Kginicis CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kginicis CoLtd 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 Kginicis CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kginicis CoLtd has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Kginicis CoLtd go up and down completely randomly.
Pair Corralation between Samsung Electronics and Kginicis CoLtd
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.63 times more return on investment than Kginicis CoLtd. However, Samsung Electronics is 1.63 times more volatile than Kginicis CoLtd. It trades about 0.04 of its potential returns per unit of risk. Kginicis CoLtd is currently generating about -0.06 per unit of risk. If you would invest 5,310,000 in Samsung Electronics Co on October 20, 2024 and sell it today you would earn a total of 60,000 from holding Samsung Electronics Co or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Kginicis CoLtd
Performance |
| Timeline |
| Samsung Electronics |
| Kginicis CoLtd |
Samsung Electronics and Kginicis CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Kginicis CoLtd
The main advantage of trading using opposite Samsung Electronics and Kginicis CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Kginicis CoLtd 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 Kginicis CoLtd will offset losses from the drop in Kginicis CoLtd's long position.| Samsung Electronics vs. Air Busan Co | Samsung Electronics vs. Cloud Air CoLtd | Samsung Electronics vs. EBEST Investment Securities | Samsung Electronics vs. Korea Investment Holdings |
| Kginicis CoLtd vs. Korea New Network | Kginicis CoLtd vs. Dong A Eltek | Kginicis CoLtd vs. Dreamus Company | Kginicis CoLtd vs. SK Bioscience Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |