Correlation Between Samsung Electronics and 122830
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and 122830 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 122830 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 122830, you can compare the effects of market volatilities on Samsung Electronics and 122830 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 122830. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and 122830.
Diversification Opportunities for Samsung Electronics and 122830
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and 122830 is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and 122830 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 122830 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 122830. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 122830 has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and 122830 go up and down completely randomly.
Pair Corralation between Samsung Electronics and 122830
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.38 times more return on investment than 122830. However, Samsung Electronics Co is 2.66 times less risky than 122830. It trades about -0.06 of its potential returns per unit of risk. 122830 is currently generating about -0.11 per unit of risk. If you would invest 6,247,617 in Samsung Electronics Co on August 27, 2024 and sell it today you would lose (1,437,617) from holding Samsung Electronics Co or give up 23.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. 122830
Performance |
| Timeline |
| Samsung Electronics |
| 122830 |
Samsung Electronics and 122830 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and 122830
The main advantage of trading using opposite Samsung Electronics and 122830 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, 122830 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 122830 will offset losses from the drop in 122830's long position.| Samsung Electronics vs. Hankukpackage Co | Samsung Electronics vs. Haitai Confectionery Foods | Samsung Electronics vs. Sangsangin Investment Securities | Samsung Electronics vs. Samlip General Foods |
| 122830 vs. Daechang Steel Co | 122830 vs. Dongbu Steel Co | 122830 vs. Samhyun Steel Co | 122830 vs. Hanil Iron Steel |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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