Correlation Between Hilton Food and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Hilton Food 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 Hilton Food and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilton Food Group and Samsung Electronics Co, you can compare the effects of market volatilities on Hilton Food 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 Hilton Food with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Food and Samsung Electronics.
Diversification Opportunities for Hilton Food and Samsung Electronics
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hilton and Samsung is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Food Group and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Hilton Food 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 Hilton Food Group 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 Hilton Food i.e., Hilton Food and Samsung Electronics go up and down completely randomly.
Pair Corralation between Hilton Food and Samsung Electronics
Assuming the 90 days trading horizon Hilton Food Group is expected to generate 0.34 times more return on investment than Samsung Electronics. However, Hilton Food Group is 2.98 times less risky than Samsung Electronics. It trades about -0.15 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.14 per unit of risk. If you would invest 94,100 in Hilton Food Group on September 5, 2024 and sell it today you would lose (3,700) from holding Hilton Food Group or give up 3.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilton Food Group vs. Samsung Electronics Co
Performance |
| Timeline |
| Hilton Food Group |
| Samsung Electronics |
Hilton Food and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Food and Samsung Electronics
The main advantage of trading using opposite Hilton Food and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Food 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.| Hilton Food vs. Samsung Electronics Co | Hilton Food vs. Samsung Electronics Co | Hilton Food vs. Hyundai Motor | Hilton Food vs. Toyota Motor Corp |
| Samsung Electronics vs. Ashtead Technology Holdings | Samsung Electronics vs. Invesco Physical Silver | Samsung Electronics vs. Pfeiffer Vacuum Technology | Samsung Electronics vs. Caledonia Mining |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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