Correlation Between MEDICAL FACILITIES and Samsung SDI
Can any of the company-specific risk be diversified away by investing in both MEDICAL FACILITIES and Samsung SDI 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 MEDICAL FACILITIES and Samsung SDI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICAL FACILITIES NEW and Samsung SDI Co, you can compare the effects of market volatilities on MEDICAL FACILITIES and Samsung SDI 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 MEDICAL FACILITIES with a short position of Samsung SDI. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICAL FACILITIES and Samsung SDI.
Diversification Opportunities for MEDICAL FACILITIES and Samsung SDI
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MEDICAL and Samsung is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding MEDICAL FACILITIES NEW and Samsung SDI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung SDI and MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW are associated (or correlated) with Samsung SDI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung SDI has no effect on the direction of MEDICAL FACILITIES i.e., MEDICAL FACILITIES and Samsung SDI go up and down completely randomly.
Pair Corralation between MEDICAL FACILITIES and Samsung SDI
Assuming the 90 days horizon MEDICAL FACILITIES NEW is expected to generate 0.69 times more return on investment than Samsung SDI. However, MEDICAL FACILITIES NEW is 1.44 times less risky than Samsung SDI. It trades about -0.03 of its potential returns per unit of risk. Samsung SDI Co is currently generating about -0.06 per unit of risk. If you would invest 1,090 in MEDICAL FACILITIES NEW on September 15, 2024 and sell it today you would lose (20.00) from holding MEDICAL FACILITIES NEW or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDICAL FACILITIES NEW vs. Samsung SDI Co
Performance |
| Timeline |
| MEDICAL FACILITIES NEW |
| Samsung SDI |
MEDICAL FACILITIES and Samsung SDI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICAL FACILITIES and Samsung SDI
The main advantage of trading using opposite MEDICAL FACILITIES and Samsung SDI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICAL FACILITIES position performs unexpectedly, Samsung SDI 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 SDI will offset losses from the drop in Samsung SDI's long position.| MEDICAL FACILITIES vs. Ramsay Health Care | MEDICAL FACILITIES vs. Universal Health Services | MEDICAL FACILITIES vs. Superior Plus Corp | MEDICAL FACILITIES vs. SIVERS SEMICONDUCTORS AB |
| Samsung SDI vs. Vulcan Materials | Samsung SDI vs. Hyster Yale Materials Handling | Samsung SDI vs. Martin Marietta Materials | Samsung SDI vs. Diamyd Medical AB |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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