Correlation Between Humasis and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Humasis 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 Humasis and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humasis Co and Samsung Electronics Co, you can compare the effects of market volatilities on Humasis 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 Humasis with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humasis and Samsung Electronics.
Diversification Opportunities for Humasis and Samsung Electronics
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Humasis and Samsung is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Humasis Co and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Humasis 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 Humasis Co 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 Humasis i.e., Humasis and Samsung Electronics go up and down completely randomly.
Pair Corralation between Humasis and Samsung Electronics
Assuming the 90 days trading horizon Humasis Co is expected to under-perform the Samsung Electronics. In addition to that, Humasis is 1.0 times more volatile than Samsung Electronics Co. It trades about -0.16 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.01 per unit of volatility. If you would invest 4,545,000 in Samsung Electronics Co on December 11, 2024 and sell it today you would earn a total of 5,000 from holding Samsung Electronics Co or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humasis Co vs. Samsung Electronics Co
Performance |
| Timeline |
| Humasis |
| Samsung Electronics |
Humasis and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humasis and Samsung Electronics
The main advantage of trading using opposite Humasis and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humasis 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.| Humasis vs. LabGenomics Co | Humasis vs. Seegene | Humasis vs. Access Bio | Humasis vs. Woori Technology Investment |
| Samsung Electronics vs. Dongbu Insurance Co | Samsung Electronics vs. Phoenix Materials Co | Samsung Electronics vs. INNOX Advanced Materials | Samsung Electronics vs. Lotte Energy Materials |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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