Correlation Between Samsung Electronics and Jb Financial
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Jb Financial 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 Jb Financial 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 Jb Financial, you can compare the effects of market volatilities on Samsung Electronics and Jb Financial 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 Jb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Jb Financial.
Diversification Opportunities for Samsung Electronics and Jb Financial
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and 175330 is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Jb Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jb Financial 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 Jb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jb Financial has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Jb Financial go up and down completely randomly.
Pair Corralation between Samsung Electronics and Jb Financial
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Jb Financial. In addition to that, Samsung Electronics is 1.74 times more volatile than Jb Financial. It trades about -0.06 of its total potential returns per unit of risk. Jb Financial is currently generating about 0.23 per unit of volatility. If you would invest 1,715,000 in Jb Financial on August 24, 2024 and sell it today you would earn a total of 153,000 from holding Jb Financial or generate 8.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Jb Financial
Performance |
| Timeline |
| Samsung Electronics |
| Jb Financial |
Samsung Electronics and Jb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Jb Financial
The main advantage of trading using opposite Samsung Electronics and Jb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Jb Financial 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 Jb Financial will offset losses from the drop in Jb Financial's long position.| Samsung Electronics vs. Dongbang Transport Logistics | Samsung Electronics vs. CKH Food Health | Samsung Electronics vs. Innowireless Co | Samsung Electronics vs. Sempio Foods Co |
| Jb Financial vs. Korea New Network | Jb Financial vs. ICD Co | Jb Financial vs. DYPNF CoLtd | Jb Financial vs. Busan Industrial 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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