Correlation Between Samsung Card and Automobile
Can any of the company-specific risk be diversified away by investing in both Samsung Card and Automobile 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 Card and Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Card Co and Automobile Pc, you can compare the effects of market volatilities on Samsung Card and Automobile 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 Card with a short position of Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and Automobile.
Diversification Opportunities for Samsung Card and Automobile
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Automobile is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card Co and Automobile Pc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automobile Pc and Samsung Card 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 Card Co are associated (or correlated) with Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automobile Pc has no effect on the direction of Samsung Card i.e., Samsung Card and Automobile go up and down completely randomly.
Pair Corralation between Samsung Card and Automobile
Assuming the 90 days trading horizon Samsung Card Co is expected to generate 0.54 times more return on investment than Automobile. However, Samsung Card Co is 1.85 times less risky than Automobile. It trades about -0.15 of its potential returns per unit of risk. Automobile Pc is currently generating about -0.11 per unit of risk. If you would invest 4,220,000 in Samsung Card Co on September 23, 2024 and sell it today you would lose (225,000) from holding Samsung Card Co or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Card Co vs. Automobile Pc
Performance |
| Timeline |
| Samsung Card |
| Automobile Pc |
Samsung Card and Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and Automobile
The main advantage of trading using opposite Samsung Card and Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card position performs unexpectedly, Automobile 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 Automobile will offset losses from the drop in Automobile's long position.| Samsung Card vs. KB Financial Group | Samsung Card vs. Shinhan Financial Group | Samsung Card vs. Hyundai Motor | Samsung Card vs. Hyundai Motor Co |
| Automobile vs. Woori Technology Investment | Automobile vs. Samsung Card Co | Automobile vs. Korea Real Estate | Automobile vs. CHOROKBAEM PANY 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 CEOs Directory module to screen CEOs from public companies around the world.
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