Correlation Between Samsung Electronics and SEOWONINTECHCoLtd
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd, you can compare the effects of market volatilities on Samsung Electronics and SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and SEOWONINTECHCoLtd.
Diversification Opportunities for Samsung Electronics and SEOWONINTECHCoLtd
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and SEOWONINTECHCoLtd is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and SEOWONINTECHCoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOWONINTECHCoLtd has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and SEOWONINTECHCoLtd go up and down completely randomly.
Pair Corralation between Samsung Electronics and SEOWONINTECHCoLtd
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the SEOWONINTECHCoLtd. In addition to that, Samsung Electronics is 1.5 times more volatile than SEOWONINTECHCoLtd. It trades about 0.0 of its total potential returns per unit of risk. SEOWONINTECHCoLtd is currently generating about 0.02 per unit of volatility. If you would invest 510,550 in SEOWONINTECHCoLtd on October 28, 2024 and sell it today you would earn a total of 27,450 from holding SEOWONINTECHCoLtd or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. SEOWONINTECHCoLtd
Performance |
| Timeline |
| Samsung Electronics |
| SEOWONINTECHCoLtd |
Samsung Electronics and SEOWONINTECHCoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and SEOWONINTECHCoLtd
The main advantage of trading using opposite Samsung Electronics and SEOWONINTECHCoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, SEOWONINTECHCoLtd 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 SEOWONINTECHCoLtd will offset losses from the drop in SEOWONINTECHCoLtd's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. SK Hynix | Samsung Electronics vs. HMM Co | Samsung Electronics vs. Kia Corp |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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