Correlation Between Samsung Electronics and Haesung DS
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Haesung DS 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 Haesung DS 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 Haesung DS Co, you can compare the effects of market volatilities on Samsung Electronics and Haesung DS 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 Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Haesung DS.
Diversification Opportunities for Samsung Electronics and Haesung DS
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Haesung is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS 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 Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Haesung DS go up and down completely randomly.
Pair Corralation between Samsung Electronics and Haesung DS
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.52 times more return on investment than Haesung DS. However, Samsung Electronics Co is 1.91 times less risky than Haesung DS. It trades about 0.0 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.02 per unit of risk. If you would invest 4,993,397 in Samsung Electronics Co on September 13, 2024 and sell it today you would lose (443,397) from holding Samsung Electronics Co or give up 8.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Haesung DS Co
Performance |
| Timeline |
| Samsung Electronics |
| Haesung DS |
Samsung Electronics and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Haesung DS
The main advantage of trading using opposite Samsung Electronics and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS's long position.| Samsung Electronics vs. LG Corp | Samsung Electronics vs. Solution Advanced Technology | Samsung Electronics vs. Busan Industrial Co | Samsung Electronics vs. Busan Ind |
| Haesung DS vs. DB Financial Investment | Haesung DS vs. KTB Investment Securities | Haesung DS vs. TS Investment Corp | Haesung DS vs. Samyung Trading 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 Managers module to screen money managers from public funds and ETFs managed around the world.
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