Correlation Between Guild Esports and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Guild Esports 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 Guild Esports and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guild Esports Plc and Samsung Electronics Co, you can compare the effects of market volatilities on Guild Esports 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 Guild Esports with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guild Esports and Samsung Electronics.
Diversification Opportunities for Guild Esports and Samsung Electronics
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guild and Samsung is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guild Esports Plc and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Guild Esports 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 Guild Esports Plc 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 Guild Esports i.e., Guild Esports and Samsung Electronics go up and down completely randomly.
Pair Corralation between Guild Esports and Samsung Electronics
Assuming the 90 days trading horizon Guild Esports Plc is expected to under-perform the Samsung Electronics. In addition to that, Guild Esports is 1.9 times more volatile than Samsung Electronics Co. It trades about -0.03 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.05 per unit of volatility. If you would invest 81,700 in Samsung Electronics Co on September 12, 2024 and sell it today you would lose (3,300) from holding Samsung Electronics Co or give up 4.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guild Esports Plc vs. Samsung Electronics Co
Performance |
| Timeline |
| Guild Esports Plc |
| Samsung Electronics |
Guild Esports and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guild Esports and Samsung Electronics
The main advantage of trading using opposite Guild Esports and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guild Esports 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.| Guild Esports vs. Cembra Money Bank | Guild Esports vs. Alior Bank SA | Guild Esports vs. Spire Healthcare Group | Guild Esports vs. Target Healthcare REIT |
| Samsung Electronics vs. Norwegian Air Shuttle | Samsung Electronics vs. GreenX Metals | Samsung Electronics vs. AMG Advanced Metallurgical | Samsung Electronics vs. Gaztransport et Technigaz |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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