Correlation Between Eastinco Mining and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Eastinco Mining 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 Eastinco Mining and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastinco Mining Exploration and Samsung Electronics Co, you can compare the effects of market volatilities on Eastinco Mining 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 Eastinco Mining with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastinco Mining and Samsung Electronics.
Diversification Opportunities for Eastinco Mining and Samsung Electronics
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastinco and Samsung is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Eastinco Mining Exploration and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Eastinco Mining 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 Eastinco Mining Exploration 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 Eastinco Mining i.e., Eastinco Mining and Samsung Electronics go up and down completely randomly.
Pair Corralation between Eastinco Mining and Samsung Electronics
Assuming the 90 days trading horizon Eastinco Mining Exploration is expected to generate 0.92 times more return on investment than Samsung Electronics. However, Eastinco Mining Exploration is 1.08 times less risky than Samsung Electronics. It trades about 0.09 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 4,900 in Eastinco Mining Exploration on October 29, 2024 and sell it today you would earn a total of 500.00 from holding Eastinco Mining Exploration or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastinco Mining Exploration vs. Samsung Electronics Co
Performance |
| Timeline |
| Eastinco Mining Expl |
| Samsung Electronics |
Eastinco Mining and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastinco Mining and Samsung Electronics
The main advantage of trading using opposite Eastinco Mining and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastinco Mining 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.| Eastinco Mining vs. Cairo Communication SpA | Eastinco Mining vs. Zegona Communications Plc | Eastinco Mining vs. Morgan Advanced Materials | Eastinco Mining vs. Virgin Wines UK |
| Samsung Electronics vs. Monster Beverage Corp | Samsung Electronics vs. Young Cos Brewery | Samsung Electronics vs. Flow Traders NV | Samsung Electronics vs. LBG Media PLC |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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