Correlation Between I Scream and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both I Scream 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 I Scream and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I Scream Edu CoLtd and Samsung Electronics Co, you can compare the effects of market volatilities on I Scream 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 I Scream with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of I Scream and Samsung Electronics.
Diversification Opportunities for I Scream and Samsung Electronics
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 289010 and Samsung is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding I Scream Edu CoLtd and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and I Scream 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 I Scream Edu CoLtd 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 I Scream i.e., I Scream and Samsung Electronics go up and down completely randomly.
Pair Corralation between I Scream and Samsung Electronics
Assuming the 90 days trading horizon I Scream Edu CoLtd is expected to generate 0.89 times more return on investment than Samsung Electronics. However, I Scream Edu CoLtd is 1.13 times less risky than Samsung Electronics. It trades about 0.04 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.09 per unit of risk. If you would invest 244,500 in I Scream Edu CoLtd on September 4, 2024 and sell it today you would earn a total of 4,000 from holding I Scream Edu CoLtd or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
I Scream Edu CoLtd vs. Samsung Electronics Co
Performance |
| Timeline |
| I Scream Edu |
| Samsung Electronics |
I Scream and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I Scream and Samsung Electronics
The main advantage of trading using opposite I Scream and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I Scream 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.| I Scream vs. Lotte Chilsung Beverage | I Scream vs. Korea Information Communications | I Scream vs. ECSTELECOM Co | I Scream vs. Jeju Semiconductor Corp |
| Samsung Electronics vs. DC Media Co | Samsung Electronics vs. Shinsegae Information Communication | Samsung Electronics vs. Insung Information Co | Samsung Electronics vs. FNC Entertainment 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |