Correlation Between GoldMining and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both GoldMining 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 GoldMining and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoldMining and Samsung Electronics Co, you can compare the effects of market volatilities on GoldMining 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 GoldMining with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GoldMining and Samsung Electronics.
Diversification Opportunities for GoldMining and Samsung Electronics
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GoldMining and Samsung is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GoldMining and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and GoldMining 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 GoldMining 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 GoldMining i.e., GoldMining and Samsung Electronics go up and down completely randomly.
Pair Corralation between GoldMining and Samsung Electronics
Assuming the 90 days trading horizon GoldMining is expected to generate 1.98 times more return on investment than Samsung Electronics. However, GoldMining is 1.98 times more volatile than Samsung Electronics Co. It trades about 0.01 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.04 per unit of risk. If you would invest 123.00 in GoldMining on September 2, 2024 and sell it today you would lose (3.00) from holding GoldMining or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 37.93% |
| Values | Daily Returns |
GoldMining vs. Samsung Electronics Co
Performance |
| Timeline |
| GoldMining |
| Samsung Electronics |
GoldMining and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GoldMining and Samsung Electronics
The main advantage of trading using opposite GoldMining and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GoldMining 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.| GoldMining vs. European Metals Holdings | GoldMining vs. Cornish Metals | GoldMining vs. Virgin Wines UK | GoldMining vs. Gaztransport et Technigaz |
| Samsung Electronics vs. Cizzle Biotechnology Holdings | Samsung Electronics vs. International Biotechnology Trust | Samsung Electronics vs. TechnipFMC PLC | Samsung Electronics vs. Intuitive Investments Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |