Correlation Between Samsung Electronics and KG Eco
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and KG Eco 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 KG Eco 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 KG Eco Technology, you can compare the effects of market volatilities on Samsung Electronics and KG Eco 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 KG Eco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and KG Eco.
Diversification Opportunities for Samsung Electronics and KG Eco
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and 151860 is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and KG Eco Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KG Eco Technology 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 KG Eco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KG Eco Technology has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and KG Eco go up and down completely randomly.
Pair Corralation between Samsung Electronics and KG Eco
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the KG Eco. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.42 times less risky than KG Eco. The stock trades about -0.02 of its potential returns per unit of risk. The KG Eco Technology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 483,402 in KG Eco Technology on October 23, 2024 and sell it today you would earn a total of 45,598 from holding KG Eco Technology or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Samsung Electronics Co vs. KG Eco Technology
Performance |
| Timeline |
| Samsung Electronics |
| KG Eco Technology |
Samsung Electronics and KG Eco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and KG Eco
The main advantage of trading using opposite Samsung Electronics and KG Eco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, KG Eco 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 KG Eco will offset losses from the drop in KG Eco's long position.| Samsung Electronics vs. Dong A Steel Technology | Samsung Electronics vs. Finebesteel | Samsung Electronics vs. Korea Steel Co | Samsung Electronics vs. DataSolution |
| KG Eco vs. Samsung Electronics Co | KG Eco vs. Samsung Electronics Co | KG Eco vs. SK Hynix | KG Eco vs. HMM 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |