Correlation Between Grand Vision and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Grand Vision 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 Grand Vision and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Vision Media and Samsung Electronics Co, you can compare the effects of market volatilities on Grand Vision 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 Grand Vision with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Vision and Samsung Electronics.
Diversification Opportunities for Grand Vision and Samsung Electronics
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grand and Samsung is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Grand Vision Media and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Grand Vision 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 Grand Vision Media 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 Grand Vision i.e., Grand Vision and Samsung Electronics go up and down completely randomly.
Pair Corralation between Grand Vision and Samsung Electronics
If you would invest 88,300 in Samsung Electronics Co on August 28, 2024 and sell it today you would lose (300.00) from holding Samsung Electronics Co or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Vision Media vs. Samsung Electronics Co
Performance |
| Timeline |
| Grand Vision Media |
| Samsung Electronics |
Grand Vision and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Vision and Samsung Electronics
The main advantage of trading using opposite Grand Vision and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Vision 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.| Grand Vision vs. Rockfire Resources plc | Grand Vision vs. Tlou Energy | Grand Vision vs. Ikigai Ventures | Grand Vision vs. Falcon Oil Gas |
| Samsung Electronics vs. Toyota Motor Corp | Samsung Electronics vs. SoftBank Group Corp | Samsung Electronics vs. OTP Bank Nyrt | Samsung Electronics vs. Las Vegas Sands |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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