Correlation Between Retail Estates and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Retail Estates 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 Retail Estates and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Retail Estates NV and Samsung Electronics Co, you can compare the effects of market volatilities on Retail Estates 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 Retail Estates with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Retail Estates and Samsung Electronics.
Diversification Opportunities for Retail Estates and Samsung Electronics
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Retail and Samsung is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Retail Estates NV and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Retail Estates 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 Retail Estates NV 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 Retail Estates i.e., Retail Estates and Samsung Electronics go up and down completely randomly.
Pair Corralation between Retail Estates and Samsung Electronics
Assuming the 90 days trading horizon Retail Estates NV is expected to generate 2.29 times more return on investment than Samsung Electronics. However, Retail Estates is 2.29 times more volatile than Samsung Electronics Co. It trades about 0.03 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 7,210 in Retail Estates NV on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Retail Estates NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Retail Estates NV vs. Samsung Electronics Co
Performance |
| Timeline |
| Retail Estates NV |
| Samsung Electronics |
Retail Estates and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Retail Estates and Samsung Electronics
The main advantage of trading using opposite Retail Estates and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Retail Estates 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.| Retail Estates vs. Samsung Electronics Co | Retail Estates vs. Samsung Electronics Co | Retail Estates vs. Hyundai Motor | Retail Estates vs. Toyota Motor Corp |
| Samsung Electronics vs. Toyota Motor Corp | Samsung Electronics vs. SoftBank Group Corp | Samsung Electronics vs. OTP Bank Nyrt | Samsung Electronics vs. Las Vegas Sands |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |