Correlation Between GEELY AUTOMOBILE and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both GEELY AUTOMOBILE 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 GEELY AUTOMOBILE and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEELY AUTOMOBILE and Samsung Electronics Co, you can compare the effects of market volatilities on GEELY AUTOMOBILE 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 GEELY AUTOMOBILE with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEELY AUTOMOBILE and Samsung Electronics.
Diversification Opportunities for GEELY AUTOMOBILE and Samsung Electronics
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEELY and Samsung is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding GEELY AUTOMOBILE and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE 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 GEELY AUTOMOBILE i.e., GEELY AUTOMOBILE and Samsung Electronics go up and down completely randomly.
Pair Corralation between GEELY AUTOMOBILE and Samsung Electronics
Assuming the 90 days trading horizon GEELY AUTOMOBILE is expected to under-perform the Samsung Electronics. But the stock apears to be less risky and, when comparing its historical volatility, GEELY AUTOMOBILE is 1.03 times less risky than Samsung Electronics. The stock trades about -0.17 of its potential returns per unit of risk. The Samsung Electronics Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 96,600 in Samsung Electronics Co on August 27, 2024 and sell it today you would earn a total of 400.00 from holding Samsung Electronics Co or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEELY AUTOMOBILE vs. Samsung Electronics Co
Performance |
| Timeline |
| GEELY AUTOMOBILE |
| Samsung Electronics |
GEELY AUTOMOBILE and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEELY AUTOMOBILE and Samsung Electronics
The main advantage of trading using opposite GEELY AUTOMOBILE and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEELY AUTOMOBILE 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.| GEELY AUTOMOBILE vs. Sekisui Chemical Co | GEELY AUTOMOBILE vs. Adtalem Global Education | GEELY AUTOMOBILE vs. KINGBOARD CHEMICAL | GEELY AUTOMOBILE vs. G8 EDUCATION |
| Samsung Electronics vs. COSMOSTEEL HLDGS | Samsung Electronics vs. Geratherm Medical AG | Samsung Electronics vs. Khiron Life Sciences | Samsung Electronics vs. Advanced Medical Solutions |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |