Correlation Between Samsung Electronics and Samji Electronics
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Samji 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 Samji 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 Samji Electronics Co, you can compare the effects of market volatilities on Samsung Electronics and Samji 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 Samji Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Samji Electronics.
Diversification Opportunities for Samsung Electronics and Samji Electronics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Samji is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Samji Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samji 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 Samji Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samji Electronics has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Samji Electronics go up and down completely randomly.
Pair Corralation between Samsung Electronics and Samji Electronics
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Samji Electronics. In addition to that, Samsung Electronics is 1.79 times more volatile than Samji Electronics Co. It trades about -0.12 of its total potential returns per unit of risk. Samji Electronics Co is currently generating about 0.56 per unit of volatility. If you would invest 852,000 in Samji Electronics Co on November 4, 2024 and sell it today you would earn a total of 79,000 from holding Samji Electronics Co or generate 9.27% 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. Samji Electronics Co
Performance |
| Timeline |
| Samsung Electronics |
| Samji Electronics |
Samsung Electronics and Samji Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Samji Electronics
The main advantage of trading using opposite Samsung Electronics and Samji Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Samji 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 Samji Electronics will offset losses from the drop in Samji Electronics' 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 |
| Samji Electronics vs. SFA Semicon Co | Samji Electronics vs. Seronics Co | Samji Electronics vs. COWELL FASHION CoLtd | Samji Electronics vs. Seohee Construction 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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