Correlation Between Bank of Nova Scotia and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Bank of Nova Scotia 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 Bank of Nova Scotia and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Bank of and Samsung Electronics Co, you can compare the effects of market volatilities on Bank of Nova Scotia 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 Bank of Nova Scotia with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Nova Scotia and Samsung Electronics.
Diversification Opportunities for Bank of Nova Scotia and Samsung Electronics
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Samsung is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Bank of Nova Scotia 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 The Bank of 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 Bank of Nova Scotia i.e., Bank of Nova Scotia and Samsung Electronics go up and down completely randomly.
Pair Corralation between Bank of Nova Scotia and Samsung Electronics
If you would invest 101,800 in The Bank of on August 25, 2024 and sell it today you would earn a total of 0.00 from holding The Bank of or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Bank of vs. Samsung Electronics Co
Performance |
| Timeline |
| Bank of Nova Scotia |
| Samsung Electronics |
Bank of Nova Scotia and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Nova Scotia and Samsung Electronics
The main advantage of trading using opposite Bank of Nova Scotia and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Nova Scotia 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.| Bank of Nova Scotia vs. HSBC Holdings plc | Bank of Nova Scotia vs. UBS Group AG | Bank of Nova Scotia vs. Barclays PLC |
| Samsung Electronics vs. Monster Beverage Corp | Samsung Electronics vs. DXC Technology | Samsung Electronics vs. Deutsche Bank Aktiengesellschaft | Samsung Electronics vs. Cognizant Technology Solutions |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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