Correlation Between Samsung Special and Global Standard
Can any of the company-specific risk be diversified away by investing in both Samsung Special and Global Standard 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 Samsung Special and Global Standard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Special Purpose and Global Standard Technology, you can compare the effects of market volatilities on Samsung Special and Global Standard 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 Samsung Special with a short position of Global Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Special and Global Standard.
Diversification Opportunities for Samsung Special and Global Standard
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and Global is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Special Purpose and Global Standard Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Standard Tech and Samsung Special 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 Samsung Special Purpose are associated (or correlated) with Global Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Standard Tech has no effect on the direction of Samsung Special i.e., Samsung Special and Global Standard go up and down completely randomly.
Pair Corralation between Samsung Special and Global Standard
Assuming the 90 days trading horizon Samsung Special is expected to generate 3.9 times less return on investment than Global Standard. In addition to that, Samsung Special is 1.41 times more volatile than Global Standard Technology. It trades about 0.04 of its total potential returns per unit of risk. Global Standard Technology is currently generating about 0.24 per unit of volatility. If you would invest 1,654,592 in Global Standard Technology on October 24, 2024 and sell it today you would earn a total of 160,408 from holding Global Standard Technology or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Special Purpose vs. Global Standard Technology
Performance |
| Timeline |
| Samsung Special Purpose |
| Global Standard Tech |
Samsung Special and Global Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Special and Global Standard
The main advantage of trading using opposite Samsung Special and Global Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Special position performs unexpectedly, Global Standard 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 Global Standard will offset losses from the drop in Global Standard's long position.| Samsung Special vs. Cuckoo Homesys Co | Samsung Special vs. Kukdong Oil Chemicals | Samsung Special vs. Homecast CoLtd | Samsung Special vs. Green Cross Medical |
| Global Standard vs. Jin Air Co | Global Standard vs. Mobile Appliance | Global Standard vs. Daejung Chemicals Metals | Global Standard vs. Duksan Hi Metal |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |