Correlation Between Air Astana and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Air Astana 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 Air Astana and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Astana Joint and Samsung Electronics Co, you can compare the effects of market volatilities on Air Astana 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 Air Astana with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Astana and Samsung Electronics.
Diversification Opportunities for Air Astana and Samsung Electronics
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Air and Samsung is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Air Astana Joint and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Air Astana 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 Air Astana Joint 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 Air Astana i.e., Air Astana and Samsung Electronics go up and down completely randomly.
Pair Corralation between Air Astana and Samsung Electronics
Assuming the 90 days trading horizon Air Astana Joint is expected to generate 0.53 times more return on investment than Samsung Electronics. However, Air Astana Joint is 1.9 times less risky than Samsung Electronics. It trades about -0.04 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.1 per unit of risk. If you would invest 604.00 in Air Astana Joint on September 4, 2024 and sell it today you would lose (9.00) from holding Air Astana Joint or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Astana Joint vs. Samsung Electronics Co
Performance |
| Timeline |
| Air Astana Joint |
| Samsung Electronics |
Air Astana and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Astana and Samsung Electronics
The main advantage of trading using opposite Air Astana and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Astana 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.| Air Astana vs. Aeorema Communications Plc | Air Astana vs. Gamma Communications PLC | Air Astana vs. Orient Telecoms | Air Astana vs. Zoom Video Communications |
| Samsung Electronics vs. MTI Wireless Edge | Samsung Electronics vs. Ecclesiastical Insurance Office | Samsung Electronics vs. Pets at Home | Samsung Electronics vs. Norwegian Air Shuttle |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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