Correlation Between Systemair and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Systemair 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 Systemair and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Samsung Electronics Co, you can compare the effects of market volatilities on Systemair 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 Systemair with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Samsung Electronics.
Diversification Opportunities for Systemair and Samsung Electronics
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Systemair and Samsung is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Systemair 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 Systemair AB 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 Systemair i.e., Systemair and Samsung Electronics go up and down completely randomly.
Pair Corralation between Systemair and Samsung Electronics
Assuming the 90 days trading horizon Systemair AB is expected to generate 1.27 times more return on investment than Samsung Electronics. However, Systemair is 1.27 times more volatile than Samsung Electronics Co. It trades about 0.14 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.14 per unit of risk. If you would invest 8,650 in Systemair AB on September 18, 2024 and sell it today you would earn a total of 650.00 from holding Systemair AB or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Systemair AB vs. Samsung Electronics Co
Performance |
| Timeline |
| Systemair AB |
| Samsung Electronics |
Systemair and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Samsung Electronics
The main advantage of trading using opposite Systemair and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair 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.| Systemair vs. Samsung Electronics Co | Systemair vs. Samsung Electronics Co | Systemair vs. Hyundai Motor | Systemair vs. Reliance Industries Ltd |
| Samsung Electronics vs. Invesco Physical Silver | Samsung Electronics vs. Ross Stores | Samsung Electronics vs. Endeavour Mining Corp | Samsung Electronics vs. Liontrust Asset Management |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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