Correlation Between Samsung Electronics and Hanjinkal
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Hanjinkal 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 Hanjinkal 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 Hanjinkal, you can compare the effects of market volatilities on Samsung Electronics and Hanjinkal 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 Hanjinkal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Hanjinkal.
Diversification Opportunities for Samsung Electronics and Hanjinkal
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Hanjinkal is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Hanjinkal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanjinkal 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 Hanjinkal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanjinkal has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Hanjinkal go up and down completely randomly.
Pair Corralation between Samsung Electronics and Hanjinkal
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Hanjinkal. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.55 times less risky than Hanjinkal. The stock trades about -0.07 of its potential returns per unit of risk. The Hanjinkal is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 7,670,000 in Hanjinkal on August 25, 2024 and sell it today you would lose (80,000) from holding Hanjinkal or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Hanjinkal
Performance |
| Timeline |
| Samsung Electronics |
| Hanjinkal |
Samsung Electronics and Hanjinkal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Hanjinkal
The main advantage of trading using opposite Samsung Electronics and Hanjinkal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Hanjinkal 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 Hanjinkal will offset losses from the drop in Hanjinkal's long position.| Samsung Electronics vs. Mobileleader CoLtd | Samsung Electronics vs. Innowireless Co | Samsung Electronics vs. Daechang Steel Co | Samsung Electronics vs. Hanil Iron Steel |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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