Correlation Between Samsung Electronics and Silla Sg
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Silla Sg 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 Silla Sg 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 Silla Sg Co, you can compare the effects of market volatilities on Samsung Electronics and Silla Sg 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 Silla Sg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Silla Sg.
Diversification Opportunities for Samsung Electronics and Silla Sg
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Silla is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Silla Sg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silla Sg 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 Silla Sg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silla Sg has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Silla Sg go up and down completely randomly.
Pair Corralation between Samsung Electronics and Silla Sg
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 2.04 times more return on investment than Silla Sg. However, Samsung Electronics is 2.04 times more volatile than Silla Sg Co. It trades about 0.02 of its potential returns per unit of risk. Silla Sg Co is currently generating about -0.13 per unit of risk. If you would invest 4,880,000 in Samsung Electronics Co on August 29, 2024 and sell it today you would earn a total of 20,000 from holding Samsung Electronics Co or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Silla Sg Co
Performance |
| Timeline |
| Samsung Electronics |
| Silla Sg |
Samsung Electronics and Silla Sg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Silla Sg
The main advantage of trading using opposite Samsung Electronics and Silla Sg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Silla Sg 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 Silla Sg will offset losses from the drop in Silla Sg's long position.| Samsung Electronics vs. Nice Information Telecommunication | Samsung Electronics vs. Mobile Appliance | Samsung Electronics vs. Korea Shipbuilding Offshore | Samsung Electronics vs. Daou Technology |
| Silla Sg vs. Samsung Electronics Co | Silla Sg vs. Samsung Electronics Co | Silla Sg vs. Hyundai Motor Co | Silla Sg vs. Hyundai Motor |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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