Correlation Between Samsung Electronics and Wing Yip
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Wing Yip 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 Wing Yip 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 Wing Yip Food, you can compare the effects of market volatilities on Samsung Electronics and Wing Yip 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 Wing Yip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Wing Yip.
Diversification Opportunities for Samsung Electronics and Wing Yip
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Wing is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Wing Yip Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wing Yip Food 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 Wing Yip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wing Yip Food has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Wing Yip go up and down completely randomly.
Pair Corralation between Samsung Electronics and Wing Yip
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Wing Yip. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 3.51 times less risky than Wing Yip. The stock trades about -0.1 of its potential returns per unit of risk. The Wing Yip Food is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 227,500 in Wing Yip Food on September 13, 2024 and sell it today you would lose (32,000) from holding Wing Yip Food or give up 14.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Wing Yip Food
Performance |
| Timeline |
| Samsung Electronics |
| Wing Yip Food |
Samsung Electronics and Wing Yip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Wing Yip
The main advantage of trading using opposite Samsung Electronics and Wing Yip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Wing Yip 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 Wing Yip will offset losses from the drop in Wing Yip's long position.| Samsung Electronics vs. Korea Air Svc | Samsung Electronics vs. Display Tech Co | Samsung Electronics vs. PLAYWITH | Samsung Electronics vs. Chorokbaem Healthcare Co |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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