Correlation Between ABOV Semiconductor and Samsung Special
Can any of the company-specific risk be diversified away by investing in both ABOV Semiconductor and Samsung Special 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 ABOV Semiconductor and Samsung Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABOV Semiconductor Co and Samsung Special Purpose, you can compare the effects of market volatilities on ABOV Semiconductor and Samsung Special 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 ABOV Semiconductor with a short position of Samsung Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABOV Semiconductor and Samsung Special.
Diversification Opportunities for ABOV Semiconductor and Samsung Special
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ABOV and Samsung is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding ABOV Semiconductor Co and Samsung Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Special Purpose and ABOV Semiconductor 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 ABOV Semiconductor Co are associated (or correlated) with Samsung Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Special Purpose has no effect on the direction of ABOV Semiconductor i.e., ABOV Semiconductor and Samsung Special go up and down completely randomly.
Pair Corralation between ABOV Semiconductor and Samsung Special
Assuming the 90 days trading horizon ABOV Semiconductor Co is expected to generate 0.99 times more return on investment than Samsung Special. However, ABOV Semiconductor Co is 1.01 times less risky than Samsung Special. It trades about 0.02 of its potential returns per unit of risk. Samsung Special Purpose is currently generating about -0.02 per unit of risk. If you would invest 818,289 in ABOV Semiconductor Co on September 14, 2024 and sell it today you would lose (42,289) from holding ABOV Semiconductor Co or give up 5.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABOV Semiconductor Co vs. Samsung Special Purpose
Performance |
| Timeline |
| ABOV Semiconductor |
| Samsung Special Purpose |
ABOV Semiconductor and Samsung Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABOV Semiconductor and Samsung Special
The main advantage of trading using opposite ABOV Semiconductor and Samsung Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABOV Semiconductor position performs unexpectedly, Samsung Special 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 Special will offset losses from the drop in Samsung Special's long position.| ABOV Semiconductor vs. Cube Entertainment | ABOV Semiconductor vs. Dreamus Company | ABOV Semiconductor vs. LG Energy Solution | ABOV Semiconductor vs. Dongwon System |
| Samsung Special vs. CU Tech Corp | Samsung Special vs. Tamul Multimedia Co | Samsung Special vs. Lion Chemtech Co | Samsung Special vs. ABOV Semiconductor Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |