Correlation Between Polaris Office and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Polaris Office 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 Polaris Office and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polaris Office Corp and Samsung Electronics Co, you can compare the effects of market volatilities on Polaris Office 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 Polaris Office with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polaris Office and Samsung Electronics.
Diversification Opportunities for Polaris Office and Samsung Electronics
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Polaris and Samsung is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Polaris Office Corp and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Polaris Office 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 Polaris Office Corp 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 Polaris Office i.e., Polaris Office and Samsung Electronics go up and down completely randomly.
Pair Corralation between Polaris Office and Samsung Electronics
Assuming the 90 days trading horizon Polaris Office Corp is expected to generate 4.02 times more return on investment than Samsung Electronics. However, Polaris Office is 4.02 times more volatile than Samsung Electronics Co. It trades about 0.07 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 146,200 in Polaris Office Corp on October 14, 2024 and sell it today you would earn a total of 439,800 from holding Polaris Office Corp or generate 300.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Polaris Office Corp vs. Samsung Electronics Co
Performance |
| Timeline |
| Polaris Office Corp |
| Samsung Electronics |
Polaris Office and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polaris Office and Samsung Electronics
The main advantage of trading using opposite Polaris Office and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polaris Office 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.| Polaris Office vs. Youngbo Chemical Co | Polaris Office vs. Digital Power Communications | Polaris Office vs. Namhae Chemical | Polaris Office vs. Kyung In Synthetic Corp |
| Samsung Electronics vs. Polaris Office Corp | Samsung Electronics vs. Korean Drug Co | Samsung Electronics vs. CU Medical Systems | Samsung Electronics vs. Tae Kyung Chemical |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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