Correlation Between Ecclesiastical Insurance and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Ecclesiastical Insurance 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 Ecclesiastical Insurance and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ecclesiastical Insurance Office and Samsung Electronics Co, you can compare the effects of market volatilities on Ecclesiastical Insurance 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 Ecclesiastical Insurance with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ecclesiastical Insurance and Samsung Electronics.
Diversification Opportunities for Ecclesiastical Insurance and Samsung Electronics
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ecclesiastical and Samsung is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ecclesiastical Insurance Offic and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Ecclesiastical Insurance 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 Ecclesiastical Insurance Office 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 Ecclesiastical Insurance i.e., Ecclesiastical Insurance and Samsung Electronics go up and down completely randomly.
Pair Corralation between Ecclesiastical Insurance and Samsung Electronics
Assuming the 90 days trading horizon Ecclesiastical Insurance Office is expected to generate 0.4 times more return on investment than Samsung Electronics. However, Ecclesiastical Insurance Office is 2.5 times less risky than Samsung Electronics. It trades about -0.02 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.18 per unit of risk. If you would invest 13,600 in Ecclesiastical Insurance Office on August 28, 2024 and sell it today you would lose (200.00) from holding Ecclesiastical Insurance Office or give up 1.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ecclesiastical Insurance Offic vs. Samsung Electronics Co
Performance |
| Timeline |
| Ecclesiastical Insurance |
| Samsung Electronics |
Ecclesiastical Insurance and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ecclesiastical Insurance and Samsung Electronics
The main advantage of trading using opposite Ecclesiastical Insurance and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ecclesiastical Insurance 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.| Ecclesiastical Insurance vs. Samsung Electronics Co | Ecclesiastical Insurance vs. Samsung Electronics Co | Ecclesiastical Insurance vs. Hyundai Motor | Ecclesiastical Insurance vs. Toyota Motor Corp |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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