Correlation Between Samsung Electronics and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Samsung Electronics and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Inzi Display.
Diversification Opportunities for Samsung Electronics and Inzi Display
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samsung and Inzi is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Inzi Display go up and down completely randomly.
Pair Corralation between Samsung Electronics and Inzi Display
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Inzi Display. In addition to that, Samsung Electronics is 1.28 times more volatile than Inzi Display CoLtd. It trades about -0.36 of its total potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.28 per unit of volatility. If you would invest 142,300 in Inzi Display CoLtd on November 6, 2024 and sell it today you would lose (6,600) from holding Inzi Display CoLtd or give up 4.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Inzi Display CoLtd
Performance |
| Timeline |
| Samsung Electronics |
| Inzi Display CoLtd |
Samsung Electronics and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Inzi Display
The main advantage of trading using opposite Samsung Electronics and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Samsung Electronics vs. Daejung Chemicals Metals | Samsung Electronics vs. Asiana Airlines | Samsung Electronics vs. Inzi Display CoLtd | Samsung Electronics vs. Shin Steel Co |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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