Correlation Between DataSolution and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both DataSolution 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 DataSolution and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DataSolution and Samsung Electronics Co, you can compare the effects of market volatilities on DataSolution 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 DataSolution with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DataSolution and Samsung Electronics.
Diversification Opportunities for DataSolution and Samsung Electronics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between DataSolution and Samsung is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding DataSolution and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and DataSolution 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 DataSolution 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 DataSolution i.e., DataSolution and Samsung Electronics go up and down completely randomly.
Pair Corralation between DataSolution and Samsung Electronics
Assuming the 90 days trading horizon DataSolution is expected to generate 2.12 times more return on investment than Samsung Electronics. However, DataSolution is 2.12 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 -0.07 per unit of risk. If you would invest 525,000 in DataSolution on November 3, 2024 and sell it today you would lose (30,500) from holding DataSolution or give up 5.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DataSolution vs. Samsung Electronics Co
Performance |
| Timeline |
| DataSolution |
| Samsung Electronics |
DataSolution and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DataSolution and Samsung Electronics
The main advantage of trading using opposite DataSolution and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DataSolution 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.| DataSolution vs. Samsung Electronics Co | DataSolution vs. Samsung Electronics Co | DataSolution vs. LG Energy Solution | DataSolution vs. SK Hynix |
| Samsung Electronics vs. Seoyon Topmetal Co | Samsung Electronics vs. Formetal Co | Samsung Electronics vs. KCC Engineering Construction | Samsung Electronics vs. Woorim Machinery 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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