Correlation Between Samsung Electronics and OliX PharmaceuticalsI
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and OliX PharmaceuticalsI 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 OliX PharmaceuticalsI 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 OliX PharmaceuticalsInc, you can compare the effects of market volatilities on Samsung Electronics and OliX PharmaceuticalsI 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 OliX PharmaceuticalsI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and OliX PharmaceuticalsI.
Diversification Opportunities for Samsung Electronics and OliX PharmaceuticalsI
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and OliX is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and OliX PharmaceuticalsInc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OliX PharmaceuticalsInc 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 OliX PharmaceuticalsI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OliX PharmaceuticalsInc has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and OliX PharmaceuticalsI go up and down completely randomly.
Pair Corralation between Samsung Electronics and OliX PharmaceuticalsI
Assuming the 90 days trading horizon Samsung Electronics is expected to generate 4.78 times less return on investment than OliX PharmaceuticalsI. But when comparing it to its historical volatility, Samsung Electronics Co is 2.63 times less risky than OliX PharmaceuticalsI. It trades about 0.08 of its potential returns per unit of risk. OliX PharmaceuticalsInc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,115,000 in OliX PharmaceuticalsInc on September 13, 2024 and sell it today you would earn a total of 405,000 from holding OliX PharmaceuticalsInc or generate 19.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. OliX PharmaceuticalsInc
Performance |
| Timeline |
| Samsung Electronics |
| OliX PharmaceuticalsInc |
Samsung Electronics and OliX PharmaceuticalsI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and OliX PharmaceuticalsI
The main advantage of trading using opposite Samsung Electronics and OliX PharmaceuticalsI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, OliX PharmaceuticalsI 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 OliX PharmaceuticalsI will offset losses from the drop in OliX PharmaceuticalsI'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 |
| OliX PharmaceuticalsI vs. Samsung Biologics Co | OliX PharmaceuticalsI vs. SK Bioscience Co | OliX PharmaceuticalsI vs. Sk Biopharmaceuticals Co | OliX PharmaceuticalsI vs. ABL Bio |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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