Correlation Between Europa Metals and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Europa Metals 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 Europa Metals and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europa Metals and Samsung Electronics Co, you can compare the effects of market volatilities on Europa Metals 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 Europa Metals with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europa Metals and Samsung Electronics.
Diversification Opportunities for Europa Metals and Samsung Electronics
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Europa and Samsung is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Europa Metals and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Europa Metals 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 Europa Metals 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 Europa Metals i.e., Europa Metals and Samsung Electronics go up and down completely randomly.
Pair Corralation between Europa Metals and Samsung Electronics
If you would invest 88,300 in Samsung Electronics Co on August 29, 2024 and sell it today you would lose (100.00) from holding Samsung Electronics Co or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Europa Metals vs. Samsung Electronics Co
Performance |
| Timeline |
| Europa Metals |
| Samsung Electronics |
Europa Metals and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europa Metals and Samsung Electronics
The main advantage of trading using opposite Europa Metals and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europa Metals 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.| Europa Metals vs. Atalaya Mining | Europa Metals vs. Central Asia Metals | Europa Metals vs. Anglo Asian Mining | Europa Metals vs. Metals Exploration Plc |
| Samsung Electronics vs. Ondine Biomedical | Samsung Electronics vs. Europa Metals | Samsung Electronics vs. Lendinvest PLC | Samsung Electronics vs. Neometals |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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