Correlation Between Pfeiffer Vacuum and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Pfeiffer Vacuum 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 Pfeiffer Vacuum and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pfeiffer Vacuum Technology and Samsung Electronics Co, you can compare the effects of market volatilities on Pfeiffer Vacuum 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 Pfeiffer Vacuum with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pfeiffer Vacuum and Samsung Electronics.
Diversification Opportunities for Pfeiffer Vacuum and Samsung Electronics
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pfeiffer and Samsung is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Pfeiffer Vacuum Technology and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Pfeiffer Vacuum 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 Pfeiffer Vacuum Technology 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 Pfeiffer Vacuum i.e., Pfeiffer Vacuum and Samsung Electronics go up and down completely randomly.
Pair Corralation between Pfeiffer Vacuum and Samsung Electronics
Assuming the 90 days trading horizon Pfeiffer Vacuum Technology is expected to under-perform the Samsung Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Pfeiffer Vacuum Technology is 7.34 times less risky than Samsung Electronics. The stock trades about -0.02 of its potential returns per unit of risk. The Samsung Electronics Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 93,650 in Samsung Electronics Co on September 13, 2024 and sell it today you would earn a total of 1,250 from holding Samsung Electronics Co or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pfeiffer Vacuum Technology vs. Samsung Electronics Co
Performance |
| Timeline |
| Pfeiffer Vacuum Tech |
| Samsung Electronics |
Pfeiffer Vacuum and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pfeiffer Vacuum and Samsung Electronics
The main advantage of trading using opposite Pfeiffer Vacuum and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pfeiffer Vacuum 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.| Pfeiffer Vacuum vs. Bank of Ireland | Pfeiffer Vacuum vs. Monster Beverage Corp | Pfeiffer Vacuum vs. MoneysupermarketCom Group PLC | Pfeiffer Vacuum vs. Alior Bank SA |
| Samsung Electronics vs. Fidelity National Information | Samsung Electronics vs. Edita Food Industries | Samsung Electronics vs. Axfood AB | Samsung Electronics vs. Air Products Chemicals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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