Correlation Between Samsung Electronics and Foodnamoo
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Foodnamoo 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 Foodnamoo 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 Foodnamoo, you can compare the effects of market volatilities on Samsung Electronics and Foodnamoo 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 Foodnamoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Foodnamoo.
Diversification Opportunities for Samsung Electronics and Foodnamoo
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and Foodnamoo is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Foodnamoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foodnamoo 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 Foodnamoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foodnamoo has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Foodnamoo go up and down completely randomly.
Pair Corralation between Samsung Electronics and Foodnamoo
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.89 times more return on investment than Foodnamoo. However, Samsung Electronics Co is 1.12 times less risky than Foodnamoo. It trades about -0.02 of its potential returns per unit of risk. Foodnamoo is currently generating about -0.12 per unit of risk. If you would invest 4,865,000 in Samsung Electronics Co on August 31, 2024 and sell it today you would lose (90,000) from holding Samsung Electronics Co or give up 1.85% 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. Foodnamoo
Performance |
| Timeline |
| Samsung Electronics |
| Foodnamoo |
Samsung Electronics and Foodnamoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Foodnamoo
The main advantage of trading using opposite Samsung Electronics and Foodnamoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Foodnamoo 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 Foodnamoo will offset losses from the drop in Foodnamoo's long position.| Samsung Electronics vs. LG Corp | Samsung Electronics vs. Busan Industrial Co | Samsung Electronics vs. Busan Ind | Samsung Electronics vs. Mirae Asset Daewoo |
| Foodnamoo vs. Cherrybro coLtd | Foodnamoo vs. Busan Industrial Co | Foodnamoo vs. Busan Ind | Foodnamoo vs. Mirae Asset Daewoo |
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.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |