Correlation Between Samsung Electronics and IFamilySC
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and IFamilySC 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 IFamilySC 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 iFamilySC Co, you can compare the effects of market volatilities on Samsung Electronics and IFamilySC 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 IFamilySC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and IFamilySC.
Diversification Opportunities for Samsung Electronics and IFamilySC
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and IFamilySC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and iFamilySC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iFamilySC 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 IFamilySC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iFamilySC has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and IFamilySC go up and down completely randomly.
Pair Corralation between Samsung Electronics and IFamilySC
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the IFamilySC. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.33 times less risky than IFamilySC. The stock trades about -0.09 of its potential returns per unit of risk. The iFamilySC Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,850,000 in iFamilySC Co on August 31, 2024 and sell it today you would lose (21,000) from holding iFamilySC Co or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samsung Electronics Co vs. iFamilySC Co
Performance |
| Timeline |
| Samsung Electronics |
| iFamilySC |
Samsung Electronics and IFamilySC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and IFamilySC
The main advantage of trading using opposite Samsung Electronics and IFamilySC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, IFamilySC 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 IFamilySC will offset losses from the drop in IFamilySC's long position.| Samsung Electronics vs. Dongsin Engineering Construction | Samsung Electronics vs. Doosan Fuel Cell | Samsung Electronics vs. Daishin Balance 1 | Samsung Electronics vs. Total Soft Bank |
| IFamilySC vs. FNSTech Co | IFamilySC vs. Amogreentech Co | IFamilySC vs. Eugene Technology CoLtd | IFamilySC vs. Samsung Life Insurance |
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
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |