Correlation Between Zinus and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Zinus 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 Zinus and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinus Inc and Samsung Electronics Co, you can compare the effects of market volatilities on Zinus 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 Zinus with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinus and Samsung Electronics.
Diversification Opportunities for Zinus and Samsung Electronics
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zinus and Samsung is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zinus Inc and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Zinus 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 Zinus Inc 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 Zinus i.e., Zinus and Samsung Electronics go up and down completely randomly.
Pair Corralation between Zinus and Samsung Electronics
Assuming the 90 days trading horizon Zinus Inc is expected to generate 2.66 times more return on investment than Samsung Electronics. However, Zinus is 2.66 times more volatile than Samsung Electronics Co. It trades about 0.21 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.29 per unit of risk. If you would invest 1,933,000 in Zinus Inc on September 23, 2024 and sell it today you would earn a total of 412,000 from holding Zinus Inc or generate 21.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zinus Inc vs. Samsung Electronics Co
Performance |
| Timeline |
| Zinus Inc |
| Samsung Electronics |
Zinus and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinus and Samsung Electronics
The main advantage of trading using opposite Zinus and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinus 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.The idea behind Zinus Inc and Samsung Electronics Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Samsung Electronics vs. LG Corp | Samsung Electronics vs. Zinus Inc | Samsung Electronics vs. Humasis Co | Samsung Electronics vs. JYP Entertainment |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |