Correlation Between Impax Asset and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Impax Asset 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 Impax Asset and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impax Asset Management and Samsung Electronics Co, you can compare the effects of market volatilities on Impax Asset 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 Impax Asset with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impax Asset and Samsung Electronics.
Diversification Opportunities for Impax Asset and Samsung Electronics
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Impax and Samsung is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Impax Asset Management and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Impax Asset 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 Impax Asset Management 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 Impax Asset i.e., Impax Asset and Samsung Electronics go up and down completely randomly.
Pair Corralation between Impax Asset and Samsung Electronics
Assuming the 90 days trading horizon Impax Asset is expected to generate 4.97 times less return on investment than Samsung Electronics. But when comparing it to its historical volatility, Impax Asset Management is 1.61 times less risky than Samsung Electronics. It trades about 0.02 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 79,500 in Samsung Electronics Co on September 13, 2024 and sell it today you would earn a total of 1,900 from holding Samsung Electronics Co or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impax Asset Management vs. Samsung Electronics Co
Performance |
| Timeline |
| Impax Asset Management |
| Samsung Electronics |
Impax Asset and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impax Asset and Samsung Electronics
The main advantage of trading using opposite Impax Asset and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impax Asset 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.| Impax Asset vs. Catalyst Media Group | Impax Asset vs. CATLIN GROUP | Impax Asset vs. Tamburi Investment Partners | Impax Asset vs. Magnora ASA |
| Samsung Electronics vs. MyHealthChecked Plc | Samsung Electronics vs. HCA Healthcare | Samsung Electronics vs. Worldwide Healthcare Trust | Samsung Electronics vs. Norwegian Air Shuttle |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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