Correlation Between Samsung Electronics and Bookook Securities
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Bookook Securities 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 Bookook Securities 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 Bookook Securities Co, you can compare the effects of market volatilities on Samsung Electronics and Bookook Securities 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 Bookook Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Bookook Securities.
Diversification Opportunities for Samsung Electronics and Bookook Securities
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Bookook is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Bookook Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bookook Securities 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 Bookook Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bookook Securities has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Bookook Securities go up and down completely randomly.
Pair Corralation between Samsung Electronics and Bookook Securities
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Bookook Securities. In addition to that, Samsung Electronics is 3.41 times more volatile than Bookook Securities Co. It trades about -0.03 of its total potential returns per unit of risk. Bookook Securities Co is currently generating about 0.13 per unit of volatility. If you would invest 1,779,463 in Bookook Securities Co on September 2, 2024 and sell it today you would earn a total of 430,537 from holding Bookook Securities Co or generate 24.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Bookook Securities Co
Performance |
| Timeline |
| Samsung Electronics |
| Bookook Securities |
Samsung Electronics and Bookook Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Bookook Securities
The main advantage of trading using opposite Samsung Electronics and Bookook Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Bookook Securities 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 Bookook Securities will offset losses from the drop in Bookook Securities' long position.| Samsung Electronics vs. LG Corp | Samsung Electronics vs. Busan Industrial Co | Samsung Electronics vs. Busan Ind | Samsung Electronics vs. Mirae Asset Daewoo |
| Bookook Securities vs. Dgb Financial | Bookook Securities vs. Samsung Life Insurance | Bookook Securities vs. DataSolution | Bookook Securities vs. Moadata 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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