Correlation Between Amedeo Air and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Amedeo Air 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 Amedeo Air and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amedeo Air Four and Samsung Electronics Co, you can compare the effects of market volatilities on Amedeo Air 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 Amedeo Air with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amedeo Air and Samsung Electronics.
Diversification Opportunities for Amedeo Air and Samsung Electronics
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amedeo and Samsung is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amedeo Air Four and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Amedeo Air 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 Amedeo Air Four 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 Amedeo Air i.e., Amedeo Air and Samsung Electronics go up and down completely randomly.
Pair Corralation between Amedeo Air and Samsung Electronics
Assuming the 90 days trading horizon Amedeo Air Four is expected to under-perform the Samsung Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Amedeo Air Four is 2.51 times less risky than Samsung Electronics. The stock trades about -0.27 of its potential returns per unit of risk. The Samsung Electronics Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 75,100 in Samsung Electronics Co on December 1, 2024 and sell it today you would earn a total of 1,800 from holding Samsung Electronics Co or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amedeo Air Four vs. Samsung Electronics Co
Performance |
| Timeline |
| Amedeo Air Four |
| Samsung Electronics |
Amedeo Air and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amedeo Air and Samsung Electronics
The main advantage of trading using opposite Amedeo Air and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amedeo Air 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.| Amedeo Air vs. MTI Wireless Edge | Amedeo Air vs. American Homes 4 | Amedeo Air vs. Norwegian Air Shuttle | Amedeo Air vs. Beazer Homes USA |
| Samsung Electronics vs. Uber Technologies | Samsung Electronics vs. Alfa Financial Software | Samsung Electronics vs. Micron Technology | Samsung Electronics vs. Check Point Software |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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