Correlation Between Samsung Electronics and Yuhan
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Yuhan 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 Yuhan 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 Yuhan, you can compare the effects of market volatilities on Samsung Electronics and Yuhan 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 Yuhan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Yuhan.
Diversification Opportunities for Samsung Electronics and Yuhan
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and Yuhan is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Yuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuhan 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 Yuhan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuhan has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Yuhan go up and down completely randomly.
Pair Corralation between Samsung Electronics and Yuhan
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Yuhan. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.88 times less risky than Yuhan. The stock trades about -0.02 of its potential returns per unit of risk. The Yuhan is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,980,952 in Yuhan on November 2, 2024 and sell it today you would earn a total of 8,009,048 from holding Yuhan or generate 160.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Yuhan
Performance |
| Timeline |
| Samsung Electronics |
| Yuhan |
Samsung Electronics and Yuhan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Yuhan
The main advantage of trading using opposite Samsung Electronics and Yuhan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Yuhan 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 Yuhan will offset losses from the drop in Yuhan's long position.| Samsung Electronics vs. Seoyon Topmetal Co | Samsung Electronics vs. Formetal Co | Samsung Electronics vs. KCC Engineering Construction | Samsung Electronics vs. Woorim Machinery Co |
| Yuhan vs. Dongil Metal Co | Yuhan vs. Heungkuk Metaltech CoLtd | Yuhan vs. Daishin Information Communications | Yuhan vs. SK Chemicals 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |