Correlation Between Samsung Electronics and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and MEDIPOST 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 MEDIPOST 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 MEDIPOST Co, you can compare the effects of market volatilities on Samsung Electronics and MEDIPOST 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 MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and MEDIPOST.
Diversification Opportunities for Samsung Electronics and MEDIPOST
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and MEDIPOST is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST 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 MEDIPOST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIPOST has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and MEDIPOST go up and down completely randomly.
Pair Corralation between Samsung Electronics and MEDIPOST
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.34 times more return on investment than MEDIPOST. However, Samsung Electronics Co is 2.98 times less risky than MEDIPOST. It trades about 0.25 of its potential returns per unit of risk. MEDIPOST Co is currently generating about -0.23 per unit of risk. If you would invest 5,240,000 in Samsung Electronics Co on November 28, 2024 and sell it today you would earn a total of 420,000 from holding Samsung Electronics Co or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Samsung Electronics Co vs. MEDIPOST Co
Performance |
| Timeline |
| Samsung Electronics |
| MEDIPOST |
Samsung Electronics and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and MEDIPOST
The main advantage of trading using opposite Samsung Electronics and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, MEDIPOST 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 MEDIPOST will offset losses from the drop in MEDIPOST's long position.| Samsung Electronics vs. Coloray International Investment | Samsung Electronics vs. Infinitt Healthcare Co | Samsung Electronics vs. Korea Investment Holdings | Samsung Electronics vs. Dongil Metal Co |
| MEDIPOST vs. Hanwha InvestmentSecurities Co | MEDIPOST vs. CU Tech Corp | MEDIPOST vs. Hanyang Digitech Co | MEDIPOST vs. Spolytech 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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