Correlation Between Axis Bank and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Axis Bank 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 Axis Bank and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axis Bank Ltd and Samsung Electronics Co, you can compare the effects of market volatilities on Axis Bank 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 Axis Bank with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axis Bank and Samsung Electronics.
Diversification Opportunities for Axis Bank and Samsung Electronics
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Axis and Samsung is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Axis Bank 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 Axis Bank 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 Axis Bank 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 Axis Bank i.e., Axis Bank and Samsung Electronics go up and down completely randomly.
Pair Corralation between Axis Bank and Samsung Electronics
Assuming the 90 days trading horizon Axis Bank Ltd is expected to under-perform the Samsung Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Axis Bank Ltd is 2.59 times less risky than Samsung Electronics. The stock trades about -0.07 of its potential returns per unit of risk. The Samsung Electronics Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 88,300 in Samsung Electronics Co on August 28, 2024 and sell it today you would lose (300.00) from holding Samsung Electronics Co or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axis Bank Ltd vs. Samsung Electronics Co
Performance |
| Timeline |
| Axis Bank |
| Samsung Electronics |
Axis Bank and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axis Bank and Samsung Electronics
The main advantage of trading using opposite Axis Bank and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axis Bank 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.| Axis Bank vs. SupplyMe Capital PLC | Axis Bank vs. Lloyds Banking Group | Axis Bank vs. 88 Energy | Axis Bank vs. Vodafone Group PLC |
| Samsung Electronics vs. Toyota Motor Corp | Samsung Electronics vs. SoftBank Group Corp | Samsung Electronics vs. OTP Bank Nyrt | Samsung Electronics vs. Las Vegas Sands |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stocks Directory Find actively traded stocks across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |