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
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and 175330 is -0.01. 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. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.08 times less risky than Jb Financial. The stock trades about -0.05 of its potential returns per unit of risk. The Jb Financial is currently generating about 0.69 of returns per unit of risk over similar time horizon. If you would invest 1,580,000 in Jb Financial on November 3, 2024 and sell it today you would earn a total of 397,000 from holding Jb Financial or generate 25.13% 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. 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. Sangsin Energy Display | Samsung Electronics vs. Display Tech Co | Samsung Electronics vs. Iljin Display | Samsung Electronics vs. ITM Semiconductor Co |
| Jb Financial vs. Youngchang Chemical Co | Jb Financial vs. TK Chemical | Jb Financial vs. Clean Science co | Jb Financial vs. Foodnamoo |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |