Correlation Between TOREX SEMICONDUCTOR and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOREX SEMICONDUCTOR LTD and Samsung Electronics Co, you can compare the effects of market volatilities on TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOREX SEMICONDUCTOR and Samsung Electronics.
Diversification Opportunities for TOREX SEMICONDUCTOR and Samsung Electronics
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TOREX and Samsung is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding TOREX SEMICONDUCTOR LTD and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and TOREX SEMICONDUCTOR 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 TOREX SEMICONDUCTOR LTD 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 TOREX SEMICONDUCTOR i.e., TOREX SEMICONDUCTOR and Samsung Electronics go up and down completely randomly.
Pair Corralation between TOREX SEMICONDUCTOR and Samsung Electronics
Assuming the 90 days horizon TOREX SEMICONDUCTOR LTD is expected to generate 1.18 times more return on investment than Samsung Electronics. However, TOREX SEMICONDUCTOR is 1.18 times more volatile than Samsung Electronics Co. It trades about 0.09 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.13 per unit of risk. If you would invest 685.00 in TOREX SEMICONDUCTOR LTD on November 5, 2024 and sell it today you would earn a total of 25.00 from holding TOREX SEMICONDUCTOR LTD or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOREX SEMICONDUCTOR LTD vs. Samsung Electronics Co
Performance |
| Timeline |
| TOREX SEMICONDUCTOR LTD |
| Samsung Electronics |
TOREX SEMICONDUCTOR and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOREX SEMICONDUCTOR and Samsung Electronics
The main advantage of trading using opposite TOREX SEMICONDUCTOR and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOREX SEMICONDUCTOR 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.| TOREX SEMICONDUCTOR vs. TRADEDOUBLER AB SK | TOREX SEMICONDUCTOR vs. The Trade Desk | TOREX SEMICONDUCTOR vs. SIDETRADE EO 1 | TOREX SEMICONDUCTOR vs. Marie Brizard Wine |
| Samsung Electronics vs. AEON STORES | Samsung Electronics vs. MagnaChip Semiconductor Corp | Samsung Electronics vs. Taiwan Semiconductor Manufacturing | Samsung Electronics vs. GOME Retail 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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