Correlation Between Samsung Electronics and HYBE Co
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and HYBE Co 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 HYBE Co 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 HYBE Co, you can compare the effects of market volatilities on Samsung Electronics and HYBE Co 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 HYBE Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and HYBE Co.
Diversification Opportunities for Samsung Electronics and HYBE Co
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and HYBE is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and HYBE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYBE Co 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 HYBE Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYBE Co has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and HYBE Co go up and down completely randomly.
Pair Corralation between Samsung Electronics and HYBE Co
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the HYBE Co. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.02 times less risky than HYBE Co. The stock trades about -0.02 of its potential returns per unit of risk. The HYBE Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 20,000,000 in HYBE Co on September 12, 2024 and sell it today you would lose (260,000) from holding HYBE Co or give up 1.3% 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. HYBE Co
Performance |
| Timeline |
| Samsung Electronics |
| HYBE Co |
Samsung Electronics and HYBE Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and HYBE Co
The main advantage of trading using opposite Samsung Electronics and HYBE Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, HYBE Co 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 HYBE Co will offset losses from the drop in HYBE Co'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 |
| HYBE Co vs. V One Tech Co | HYBE Co vs. RFTech Co | HYBE Co vs. Dongbang Ship Machinery | HYBE Co vs. Lion Chemtech 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |