Correlation Between BYD ELECTRONIC and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both BYD ELECTRONIC 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 BYD ELECTRONIC and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BYD ELECTRONIC and Samsung Electronics Co, you can compare the effects of market volatilities on BYD ELECTRONIC 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 BYD ELECTRONIC with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BYD ELECTRONIC and Samsung Electronics.
Diversification Opportunities for BYD ELECTRONIC and Samsung Electronics
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BYD and Samsung is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding BYD ELECTRONIC and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and BYD ELECTRONIC 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 BYD ELECTRONIC 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 BYD ELECTRONIC i.e., BYD ELECTRONIC and Samsung Electronics go up and down completely randomly.
Pair Corralation between BYD ELECTRONIC and Samsung Electronics
Assuming the 90 days trading horizon BYD ELECTRONIC is expected to generate 1.54 times more return on investment than Samsung Electronics. However, BYD ELECTRONIC is 1.54 times more volatile than Samsung Electronics Co. It trades about 0.13 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 370.00 in BYD ELECTRONIC on September 1, 2024 and sell it today you would earn a total of 44.00 from holding BYD ELECTRONIC or generate 11.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BYD ELECTRONIC vs. Samsung Electronics Co
Performance |
| Timeline |
| BYD ELECTRONIC |
| Samsung Electronics |
BYD ELECTRONIC and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BYD ELECTRONIC and Samsung Electronics
The main advantage of trading using opposite BYD ELECTRONIC and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BYD ELECTRONIC 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.| BYD ELECTRONIC vs. Texas Roadhouse | BYD ELECTRONIC vs. FUYO GENERAL LEASE | BYD ELECTRONIC vs. KAUFMAN ET BROAD | BYD ELECTRONIC vs. QUEEN S ROAD |
| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |