Correlation Between First Majestic and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both First Majestic 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 First Majestic and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Majestic Silver and Samsung Electronics Co, you can compare the effects of market volatilities on First Majestic 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 First Majestic with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Majestic and Samsung Electronics.
Diversification Opportunities for First Majestic and Samsung Electronics
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and Samsung is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding First Majestic Silver and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and First Majestic 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 First Majestic Silver 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 First Majestic i.e., First Majestic and Samsung Electronics go up and down completely randomly.
Pair Corralation between First Majestic and Samsung Electronics
Assuming the 90 days horizon First Majestic Silver is expected to generate 1.33 times more return on investment than Samsung Electronics. However, First Majestic is 1.33 times more volatile than Samsung Electronics Co. It trades about 0.29 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.29 per unit of risk. If you would invest 46,209 in First Majestic Silver on November 8, 2024 and sell it today you would earn a total of 3,199 from holding First Majestic Silver or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Majestic Silver vs. Samsung Electronics Co
Performance |
| Timeline |
| First Majestic Silver |
| Samsung Electronics |
First Majestic and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Majestic and Samsung Electronics
The main advantage of trading using opposite First Majestic and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Majestic 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.| First Majestic vs. Desarrolladora Homex SAB | First Majestic vs. Tesla Inc | First Majestic vs. CMR SAB de |
| Samsung Electronics vs. Cognizant Technology Solutions | Samsung Electronics vs. Southwest Airlines | Samsung Electronics vs. Verizon Communications | Samsung Electronics vs. Martin Marietta Materials |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |