Correlation Between Bosung Power and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Bosung Power and Samsung Electronics 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 Bosung Power and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bosung Power Technology and Samsung Electronics Co, you can compare the effects of market volatilities on Bosung Power and Samsung Electronics 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 Bosung Power with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosung Power and Samsung Electronics.
Diversification Opportunities for Bosung Power and Samsung Electronics
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bosung and Samsung is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bosung Power Technology and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Bosung Power 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 Bosung Power Technology are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Bosung Power i.e., Bosung Power and Samsung Electronics go up and down completely randomly.
Pair Corralation between Bosung Power and Samsung Electronics
Assuming the 90 days trading horizon Bosung Power Technology is expected to under-perform the Samsung Electronics. In addition to that, Bosung Power is 1.78 times more volatile than Samsung Electronics Co. It trades about -0.01 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.01 per unit of volatility. If you would invest 6,081,666 in Samsung Electronics Co on September 1, 2024 and sell it today you would lose (661,666) from holding Samsung Electronics Co or give up 10.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.77% |
| Values | Daily Returns |
Bosung Power Technology vs. Samsung Electronics Co
Performance |
| Timeline |
| Bosung Power Technology |
| Samsung Electronics |
Bosung Power and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosung Power and Samsung Electronics
The main advantage of trading using opposite Bosung Power and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosung Power position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Bosung Power vs. Korea New Network | Bosung Power vs. ICD Co | Bosung Power vs. DYPNF CoLtd | Bosung Power vs. Busan Industrial Co |
| Samsung Electronics vs. Konan Technology | Samsung Electronics vs. Orbitech Co | Samsung Electronics vs. Netmarble Games Corp | Samsung Electronics vs. Golden Bridge Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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