Correlation Between BIT Computer and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both BIT Computer 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 BIT Computer and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Samsung Electronics Co, you can compare the effects of market volatilities on BIT Computer 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 BIT Computer with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Samsung Electronics.
Diversification Opportunities for BIT Computer and Samsung Electronics
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BIT and Samsung is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer Co and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and BIT Computer 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 BIT Computer Co 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 BIT Computer i.e., BIT Computer and Samsung Electronics go up and down completely randomly.
Pair Corralation between BIT Computer and Samsung Electronics
Assuming the 90 days trading horizon BIT Computer Co is expected to generate 0.56 times more return on investment than Samsung Electronics. However, BIT Computer Co is 1.78 times less risky than Samsung Electronics. It trades about 0.05 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 493,000 in BIT Computer Co on September 1, 2024 and sell it today you would earn a total of 8,000 from holding BIT Computer Co or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BIT Computer Co vs. Samsung Electronics Co
Performance |
| Timeline |
| BIT Computer |
| Samsung Electronics |
BIT Computer and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Samsung Electronics
The main advantage of trading using opposite BIT Computer and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer 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.| BIT Computer vs. AptaBio Therapeutics | BIT Computer vs. KT Hitel | BIT Computer vs. SillaJen | BIT Computer vs. Cytogen |
| Samsung Electronics vs. Seoul Electronics Telecom | Samsung Electronics vs. Ni Steel | Samsung Electronics vs. CKH Food Health | Samsung Electronics vs. Daedong Steel 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |