Correlation Between Mobile Appliance and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Mobile Appliance 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 Mobile Appliance and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobile Appliance and Samsung Electronics Co, you can compare the effects of market volatilities on Mobile Appliance 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 Mobile Appliance with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobile Appliance and Samsung Electronics.
Diversification Opportunities for Mobile Appliance and Samsung Electronics
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mobile and Samsung is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mobile Appliance and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Mobile Appliance 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 Mobile Appliance 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 Mobile Appliance i.e., Mobile Appliance and Samsung Electronics go up and down completely randomly.
Pair Corralation between Mobile Appliance and Samsung Electronics
Assuming the 90 days trading horizon Mobile Appliance is expected to generate 1.34 times more return on investment than Samsung Electronics. However, Mobile Appliance is 1.34 times more volatile than Samsung Electronics Co. It trades about 0.06 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 216,000 in Mobile Appliance on August 25, 2024 and sell it today you would earn a total of 8,500 from holding Mobile Appliance or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobile Appliance vs. Samsung Electronics Co
Performance |
| Timeline |
| Mobile Appliance |
| Samsung Electronics |
Mobile Appliance and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobile Appliance and Samsung Electronics
The main advantage of trading using opposite Mobile Appliance and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobile Appliance 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.| Mobile Appliance vs. Samsung Electronics Co | Mobile Appliance vs. Samsung Electronics Co | Mobile Appliance vs. LG Energy Solution | Mobile Appliance vs. SK Hynix |
| Samsung Electronics vs. Mobileleader CoLtd | Samsung Electronics vs. Innowireless Co | Samsung Electronics vs. Daechang Steel Co | Samsung Electronics vs. Hanil Iron Steel |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |