Correlation Between Samsung Electronics and INSUN Environmental
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and INSUN Environmental 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 INSUN Environmental 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 INSUN Environmental New, you can compare the effects of market volatilities on Samsung Electronics and INSUN Environmental 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 INSUN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and INSUN Environmental.
Diversification Opportunities for Samsung Electronics and INSUN Environmental
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and INSUN is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and INSUN Environmental New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSUN Environmental New 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 INSUN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSUN Environmental New has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and INSUN Environmental go up and down completely randomly.
Pair Corralation between Samsung Electronics and INSUN Environmental
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.93 times more return on investment than INSUN Environmental. However, Samsung Electronics Co is 1.07 times less risky than INSUN Environmental. It trades about -0.01 of its potential returns per unit of risk. INSUN Environmental New is currently generating about -0.04 per unit of risk. If you would invest 5,439,889 in Samsung Electronics Co on October 14, 2024 and sell it today you would lose (844,889) from holding Samsung Electronics Co or give up 15.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. INSUN Environmental New
Performance |
| Timeline |
| Samsung Electronics |
| INSUN Environmental New |
Samsung Electronics and INSUN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and INSUN Environmental
The main advantage of trading using opposite Samsung Electronics and INSUN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, INSUN Environmental 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 INSUN Environmental will offset losses from the drop in INSUN Environmental's long position.| Samsung Electronics vs. Polaris Office Corp | Samsung Electronics vs. Korean Drug Co | Samsung Electronics vs. CU Medical Systems | Samsung Electronics vs. Tae Kyung Chemical |
| INSUN Environmental vs. Korea Environment Technology | INSUN Environmental vs. Paradise Co | INSUN Environmental vs. Seoul Semiconductor Co | INSUN Environmental vs. JUSUNG ENGINEERING Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |