Correlation Between Samsung Electronics and Yura Tech
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Yura Tech 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 Yura Tech 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 Yura Tech Co, you can compare the effects of market volatilities on Samsung Electronics and Yura Tech 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 Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Yura Tech.
Diversification Opportunities for Samsung Electronics and Yura Tech
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Yura is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech 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 Yura Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yura Tech has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Yura Tech go up and down completely randomly.
Pair Corralation between Samsung Electronics and Yura Tech
Assuming the 90 days trading horizon Samsung Electronics is expected to generate 5.24 times less return on investment than Yura Tech. But when comparing it to its historical volatility, Samsung Electronics Co is 2.21 times less risky than Yura Tech. It trades about 0.08 of its potential returns per unit of risk. Yura Tech Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 711,355 in Yura Tech Co on October 12, 2024 and sell it today you would earn a total of 100,645 from holding Yura Tech Co or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Yura Tech Co
Performance |
| Timeline |
| Samsung Electronics |
| Yura Tech |
Samsung Electronics and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Yura Tech
The main advantage of trading using opposite Samsung Electronics and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Yura Tech 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 Yura Tech will offset losses from the drop in Yura Tech's long position.| Samsung Electronics vs. LG Corp | Samsung Electronics vs. Busan Industrial Co | Samsung Electronics vs. Busan Ind | Samsung Electronics vs. UNISEM Co |
| Yura Tech vs. GS Retail Co | Yura Tech vs. Samsung Electronics Co | Yura Tech vs. Shinil Electronics Co | Yura Tech vs. DAEDUCK ELECTRONICS CoLtd |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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