Correlation Between GSTechnologies and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both GSTechnologies 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 GSTechnologies and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSTechnologies and Samsung Electronics Co, you can compare the effects of market volatilities on GSTechnologies 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 GSTechnologies with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSTechnologies and Samsung Electronics.
Diversification Opportunities for GSTechnologies and Samsung Electronics
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GSTechnologies and Samsung is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding GSTechnologies and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and GSTechnologies 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 GSTechnologies 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 GSTechnologies i.e., GSTechnologies and Samsung Electronics go up and down completely randomly.
Pair Corralation between GSTechnologies and Samsung Electronics
Assuming the 90 days trading horizon GSTechnologies is expected to generate 3.21 times more return on investment than Samsung Electronics. However, GSTechnologies is 3.21 times more volatile than Samsung Electronics Co. It trades about 0.13 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.15 per unit of risk. If you would invest 77.00 in GSTechnologies on September 23, 2024 and sell it today you would earn a total of 101.00 from holding GSTechnologies or generate 131.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GSTechnologies vs. Samsung Electronics Co
Performance |
| Timeline |
| GSTechnologies |
| Samsung Electronics |
GSTechnologies and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSTechnologies and Samsung Electronics
The main advantage of trading using opposite GSTechnologies and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSTechnologies 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.| GSTechnologies vs. Samsung Electronics Co | GSTechnologies vs. Samsung Electronics Co | GSTechnologies vs. Hyundai Motor | GSTechnologies vs. Toyota Motor Corp |
| Samsung Electronics vs. Addtech | Samsung Electronics vs. Roper Technologies | Samsung Electronics vs. alstria office REIT AG | Samsung Electronics vs. Arrow Electronics |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |