Correlation Between Gaztransport and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Gaztransport 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 Gaztransport and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaztransport et Technigaz and Samsung Electronics Co, you can compare the effects of market volatilities on Gaztransport 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 Gaztransport with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaztransport and Samsung Electronics.
Diversification Opportunities for Gaztransport and Samsung Electronics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gaztransport and Samsung is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport et Technigaz and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Gaztransport 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 Gaztransport et Technigaz 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 Gaztransport i.e., Gaztransport and Samsung Electronics go up and down completely randomly.
Pair Corralation between Gaztransport and Samsung Electronics
Assuming the 90 days trading horizon Gaztransport et Technigaz is expected to generate 0.69 times more return on investment than Samsung Electronics. However, Gaztransport et Technigaz is 1.46 times less risky than Samsung Electronics. It trades about 0.08 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.2 per unit of risk. If you would invest 13,300 in Gaztransport et Technigaz on August 25, 2024 and sell it today you would earn a total of 905.00 from holding Gaztransport et Technigaz or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaztransport et Technigaz vs. Samsung Electronics Co
Performance |
| Timeline |
| Gaztransport et Technigaz |
| Samsung Electronics |
Gaztransport and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaztransport and Samsung Electronics
The main advantage of trading using opposite Gaztransport and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaztransport 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.| Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Hyundai Motor | Gaztransport 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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