Correlation Between 24SEVENOFFICE GROUP and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SEVENOFFICE GROUP AB and Samsung Electronics Co, you can compare the effects of market volatilities on 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SEVENOFFICE GROUP and Samsung Electronics.
Diversification Opportunities for 24SEVENOFFICE GROUP and Samsung Electronics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 24SEVENOFFICE and Samsung is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding 24SEVENOFFICE GROUP AB and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and 24SEVENOFFICE GROUP 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 24SEVENOFFICE GROUP AB 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 24SEVENOFFICE GROUP i.e., 24SEVENOFFICE GROUP and Samsung Electronics go up and down completely randomly.
Pair Corralation between 24SEVENOFFICE GROUP and Samsung Electronics
Assuming the 90 days horizon 24SEVENOFFICE GROUP AB is expected to under-perform the Samsung Electronics. In addition to that, 24SEVENOFFICE GROUP is 3.4 times more volatile than Samsung Electronics Co. It trades about -0.11 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.19 per unit of volatility. If you would invest 92,000 in Samsung Electronics Co on November 5, 2024 and sell it today you would lose (6,800) from holding Samsung Electronics Co or give up 7.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
24SEVENOFFICE GROUP AB vs. Samsung Electronics Co
Performance |
| Timeline |
| 24SEVENOFFICE GROUP |
| Samsung Electronics |
24SEVENOFFICE GROUP and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 24SEVENOFFICE GROUP and Samsung Electronics
The main advantage of trading using opposite 24SEVENOFFICE GROUP and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SEVENOFFICE GROUP 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.| 24SEVENOFFICE GROUP vs. Penta Ocean Construction Co | 24SEVENOFFICE GROUP vs. DAIRY FARM INTL | 24SEVENOFFICE GROUP vs. Federal Agricultural Mortgage | 24SEVENOFFICE GROUP vs. Australian Agricultural |
| Samsung Electronics vs. MCEWEN MINING INC | Samsung Electronics vs. Perseus Mining Limited | Samsung Electronics vs. Tyson Foods | Samsung Electronics vs. CORNISH METALS INC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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