Correlation Between GreenX Metals and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both GreenX 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 GreenX 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 GreenX Metals and Samsung Electronics Co, you can compare the effects of market volatilities on GreenX 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 GreenX Metals with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Samsung Electronics.
Diversification Opportunities for GreenX Metals and Samsung Electronics
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenX and Samsung is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding GreenX 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 GreenX 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 GreenX 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 GreenX Metals i.e., GreenX Metals and Samsung Electronics go up and down completely randomly.
Pair Corralation between GreenX Metals and Samsung Electronics
Assuming the 90 days trading horizon GreenX Metals is expected to generate 1.81 times more return on investment than Samsung Electronics. However, GreenX Metals is 1.81 times more volatile than Samsung Electronics Co. It trades about 0.02 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.12 per unit of risk. If you would invest 3,800 in GreenX Metals on November 28, 2024 and sell it today you would earn a total of 0.00 from holding GreenX Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Samsung Electronics Co
Performance |
| Timeline |
| GreenX Metals |
| Samsung Electronics |
GreenX Metals and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Samsung Electronics
The main advantage of trading using opposite GreenX Metals and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX 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.| GreenX Metals vs. Lindsell Train Investment | GreenX Metals vs. Fulcrum Metals PLC | GreenX Metals vs. Schroders Investment Trusts | GreenX Metals vs. Atalaya Mining |
| Samsung Electronics vs. Impax Environmental Markets | Samsung Electronics vs. Bell Food Group | Samsung Electronics vs. Austevoll Seafood ASA | Samsung Electronics vs. Westlake Chemical Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |