Correlation Between MOL Hungarian and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both MOL Hungarian 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 MOL Hungarian and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOL Hungarian Oil and Samsung Electronics Co, you can compare the effects of market volatilities on MOL Hungarian 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 MOL Hungarian with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOL Hungarian and Samsung Electronics.
Diversification Opportunities for MOL Hungarian and Samsung Electronics
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between MOL and Samsung is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding MOL Hungarian Oil and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and MOL Hungarian 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 MOL Hungarian Oil 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 MOL Hungarian i.e., MOL Hungarian and Samsung Electronics go up and down completely randomly.
Pair Corralation between MOL Hungarian and Samsung Electronics
Assuming the 90 days trading horizon MOL Hungarian Oil is expected to generate 0.81 times more return on investment than Samsung Electronics. However, MOL Hungarian Oil is 1.24 times less risky than Samsung Electronics. It trades about 0.02 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 262,193 in MOL Hungarian Oil on August 28, 2024 and sell it today you would earn a total of 30,007 from holding MOL Hungarian Oil or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.11% |
| Values | Daily Returns |
MOL Hungarian Oil vs. Samsung Electronics Co
Performance |
| Timeline |
| MOL Hungarian Oil |
| Samsung Electronics |
MOL Hungarian and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOL Hungarian and Samsung Electronics
The main advantage of trading using opposite MOL Hungarian and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOL Hungarian 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.| MOL Hungarian vs. Samsung Electronics Co | MOL Hungarian vs. Automatic Data Processing | MOL Hungarian vs. Creo Medical Group | MOL Hungarian vs. Datalogic |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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