Correlation Between DevEx Resources and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both DevEx Resources 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 DevEx Resources and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DevEx Resources Limited and Samsung Electronics Co, you can compare the effects of market volatilities on DevEx Resources 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 DevEx Resources with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of DevEx Resources and Samsung Electronics.
Diversification Opportunities for DevEx Resources and Samsung Electronics
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DevEx and Samsung is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding DevEx Resources Limited and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and DevEx Resources 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 DevEx Resources Limited 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 DevEx Resources i.e., DevEx Resources and Samsung Electronics go up and down completely randomly.
Pair Corralation between DevEx Resources and Samsung Electronics
Assuming the 90 days horizon DevEx Resources Limited is expected to generate 3.21 times more return on investment than Samsung Electronics. However, DevEx Resources is 3.21 times more volatile than Samsung Electronics Co. It trades about 0.03 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 7.10 in DevEx Resources Limited on August 30, 2024 and sell it today you would lose (0.10) from holding DevEx Resources Limited or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DevEx Resources Limited vs. Samsung Electronics Co
Performance |
| Timeline |
| DevEx Resources |
| Samsung Electronics |
DevEx Resources and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DevEx Resources and Samsung Electronics
The main advantage of trading using opposite DevEx Resources and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DevEx Resources 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.| DevEx Resources vs. YOOMA WELLNESS INC | DevEx Resources vs. EEDUCATION ALBERT AB | DevEx Resources vs. Bausch Health Companies | DevEx Resources vs. G8 EDUCATION |
| Samsung Electronics vs. Fast Retailing Co | Samsung Electronics vs. AUTO TRADER ADR | Samsung Electronics vs. RETAIL FOOD GROUP | Samsung Electronics vs. Tradeweb Markets |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |