Correlation Between PARKEN Sport and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both PARKEN Sport 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 PARKEN Sport and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PARKEN Sport Entertainment and Samsung Electronics Co, you can compare the effects of market volatilities on PARKEN Sport 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 PARKEN Sport with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of PARKEN Sport and Samsung Electronics.
Diversification Opportunities for PARKEN Sport and Samsung Electronics
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PARKEN and Samsung is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding PARKEN Sport Entertainment and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and PARKEN Sport 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 PARKEN Sport Entertainment 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 PARKEN Sport i.e., PARKEN Sport and Samsung Electronics go up and down completely randomly.
Pair Corralation between PARKEN Sport and Samsung Electronics
Assuming the 90 days horizon PARKEN Sport Entertainment is expected to generate 0.83 times more return on investment than Samsung Electronics. However, PARKEN Sport Entertainment is 1.21 times less risky than Samsung Electronics. It trades about -0.03 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.13 per unit of risk. If you would invest 1,775 in PARKEN Sport Entertainment on November 5, 2024 and sell it today you would lose (20.00) from holding PARKEN Sport Entertainment or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PARKEN Sport Entertainment vs. Samsung Electronics Co
Performance |
| Timeline |
| PARKEN Sport Enterta |
| Samsung Electronics |
PARKEN Sport and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PARKEN Sport and Samsung Electronics
The main advantage of trading using opposite PARKEN Sport and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PARKEN Sport 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.| PARKEN Sport vs. ecotel communication ag | PARKEN Sport vs. JAPAN AIRLINES | PARKEN Sport vs. Aegean Airlines SA | PARKEN Sport vs. Citic Telecom International |
| Samsung Electronics vs. AEON STORES | Samsung Electronics vs. MagnaChip Semiconductor Corp | Samsung Electronics vs. Taiwan Semiconductor Manufacturing | Samsung Electronics vs. GOME Retail Holdings |
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.
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