Correlation Between Samsung Electronics and Atec
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Atec 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 Atec 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 Atec Co, you can compare the effects of market volatilities on Samsung Electronics and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Atec.
Diversification Opportunities for Samsung Electronics and Atec
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Atec is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Atec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Atec go up and down completely randomly.
Pair Corralation between Samsung Electronics and Atec
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Atec. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 3.04 times less risky than Atec. The stock trades about -0.01 of its potential returns per unit of risk. The Atec Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 840,831 in Atec Co on December 4, 2024 and sell it today you would earn a total of 2,284,169 from holding Atec Co or generate 271.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Atec Co
Performance |
| Timeline |
| Samsung Electronics |
| Atec |
Samsung Electronics and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Atec
The main advantage of trading using opposite Samsung Electronics and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Samsung Electronics vs. Kisan Telecom Co | Samsung Electronics vs. Daishin Information Communications | Samsung Electronics vs. SK Telecom Co | Samsung Electronics vs. Hyundai Engineering Plastics |
| Atec vs. SEOJEON ELECTRIC MACHINERY | Atec vs. Keyang Electric Machinery | Atec vs. Hwacheon Machinery Co | Atec vs. Sam Yang Foods |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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