Correlation Between International Consolidated and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both International Consolidated 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 International Consolidated and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Consolidated Companies and Samsung Electronics Co, you can compare the effects of market volatilities on International Consolidated 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 International Consolidated with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and Samsung Electronics.
Diversification Opportunities for International Consolidated and Samsung Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and Samsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Com and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and International Consolidated 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 International Consolidated Companies 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 International Consolidated i.e., International Consolidated and Samsung Electronics go up and down completely randomly.
Pair Corralation between International Consolidated and Samsung Electronics
Given the investment horizon of 90 days International Consolidated Companies is expected to generate 4438.67 times more return on investment than Samsung Electronics. However, International Consolidated is 4438.67 times more volatile than Samsung Electronics Co. It trades about 0.27 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.09 per unit of risk. If you would invest 40.00 in International Consolidated Companies on October 25, 2024 and sell it today you would lose (36.90) from holding International Consolidated Companies or give up 92.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
International Consolidated Com vs. Samsung Electronics Co
Performance |
| Timeline |
| International Consolidated |
| Samsung Electronics |
International Consolidated and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and Samsung Electronics
The main advantage of trading using opposite International Consolidated and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated 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.| International Consolidated vs. Frontera Group | International Consolidated vs. All American Pet | International Consolidated vs. XCPCNL Business Services | International Consolidated vs. Aramark Holdings |
| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp | Samsung Electronics vs. TCL Electronics Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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