Correlation Between Ion Beam and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Ion Beam 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 Ion Beam and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ion Beam Applications and Samsung Electronics Co, you can compare the effects of market volatilities on Ion Beam 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 Ion Beam with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and Samsung Electronics.
Diversification Opportunities for Ion Beam and Samsung Electronics
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ion and Samsung is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Ion Beam 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 Ion Beam Applications 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 Ion Beam i.e., Ion Beam and Samsung Electronics go up and down completely randomly.
Pair Corralation between Ion Beam and Samsung Electronics
Assuming the 90 days trading horizon Ion Beam Applications is expected to under-perform the Samsung Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Ion Beam Applications is 1.06 times less risky than Samsung Electronics. The stock trades about -0.05 of its potential returns per unit of risk. The Samsung Electronics Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 88,300 in Samsung Electronics Co on August 29, 2024 and sell it today you would lose (100.00) from holding Samsung Electronics Co or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ion Beam Applications vs. Samsung Electronics Co
Performance |
| Timeline |
| Ion Beam Applications |
| Samsung Electronics |
Ion Beam and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and Samsung Electronics
The main advantage of trading using opposite Ion Beam and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam 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.| Ion Beam vs. Lendinvest PLC | Ion Beam vs. Neometals | Ion Beam vs. Coor Service Management | Ion Beam vs. Albion Technology General |
| Samsung Electronics vs. Ondine Biomedical | Samsung Electronics vs. Europa Metals | Samsung Electronics vs. Lendinvest PLC | Samsung Electronics vs. Neometals |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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