Correlation Between Samsung Electronics and Ananti
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Ananti 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 Ananti 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 Ananti Inc, you can compare the effects of market volatilities on Samsung Electronics and Ananti 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 Ananti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Ananti.
Diversification Opportunities for Samsung Electronics and Ananti
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Ananti is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Ananti Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ananti Inc 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 Ananti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ananti Inc has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Ananti go up and down completely randomly.
Pair Corralation between Samsung Electronics and Ananti
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Ananti. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.64 times less risky than Ananti. The stock trades about -0.02 of its potential returns per unit of risk. The Ananti Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 783,000 in Ananti Inc on November 2, 2024 and sell it today you would lose (157,000) from holding Ananti Inc or give up 20.05% 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. Ananti Inc
Performance |
| Timeline |
| Samsung Electronics |
| Ananti Inc |
Samsung Electronics and Ananti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Ananti
The main advantage of trading using opposite Samsung Electronics and Ananti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Ananti 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 Ananti will offset losses from the drop in Ananti'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 |
| Ananti vs. Dongwha Enterprise CoLtd | Ananti vs. InBody CoLtd | Ananti vs. Seegene | Ananti vs. Dongsin Engineering Construction |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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