Correlation Between Samsung Electronics and Mobase Electronics
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Mobase Electronics 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 Mobase Electronics 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 Mobase Electronics CoLtd, you can compare the effects of market volatilities on Samsung Electronics and Mobase Electronics 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 Mobase Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Mobase Electronics.
Diversification Opportunities for Samsung Electronics and Mobase Electronics
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Mobase is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Mobase Electronics CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobase Electronics CoLtd 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 Mobase Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobase Electronics CoLtd has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Mobase Electronics go up and down completely randomly.
Pair Corralation between Samsung Electronics and Mobase Electronics
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Mobase Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 2.15 times less risky than Mobase Electronics. The stock trades about -0.01 of its potential returns per unit of risk. The Mobase Electronics CoLtd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 136,741 in Mobase Electronics CoLtd on September 4, 2024 and sell it today you would earn a total of 16,459 from holding Mobase Electronics CoLtd or generate 12.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Mobase Electronics CoLtd
Performance |
| Timeline |
| Samsung Electronics |
| Mobase Electronics CoLtd |
Samsung Electronics and Mobase Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Mobase Electronics
The main advantage of trading using opposite Samsung Electronics and Mobase Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Mobase Electronics 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 Mobase Electronics will offset losses from the drop in Mobase Electronics' long position.| Samsung Electronics vs. DC Media Co | Samsung Electronics vs. Shinsegae Information Communication | Samsung Electronics vs. Insung Information Co | Samsung Electronics vs. FNC Entertainment Co |
| Mobase Electronics vs. Korea Real Estate | Mobase Electronics vs. Busan Industrial Co | Mobase Electronics vs. UNISEM Co | Mobase Electronics vs. RPBio Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |