Correlation Between Grupo Lamosa and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Grupo Lamosa 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 Grupo Lamosa and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Lamosa SAB and Samsung Electronics Co, you can compare the effects of market volatilities on Grupo Lamosa 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 Grupo Lamosa with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Lamosa and Samsung Electronics.
Diversification Opportunities for Grupo Lamosa and Samsung Electronics
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and Samsung is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Lamosa SAB and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Grupo Lamosa 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 Grupo Lamosa SAB 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 Grupo Lamosa i.e., Grupo Lamosa and Samsung Electronics go up and down completely randomly.
Pair Corralation between Grupo Lamosa and Samsung Electronics
Assuming the 90 days trading horizon Grupo Lamosa SAB is expected to generate 0.28 times more return on investment than Samsung Electronics. However, Grupo Lamosa SAB is 3.62 times less risky than Samsung Electronics. It trades about -0.08 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.16 per unit of risk. If you would invest 12,100 in Grupo Lamosa SAB on November 3, 2024 and sell it today you would lose (600.00) from holding Grupo Lamosa SAB or give up 4.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Lamosa SAB vs. Samsung Electronics Co
Performance |
| Timeline |
| Grupo Lamosa SAB |
| Samsung Electronics |
Grupo Lamosa and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Lamosa and Samsung Electronics
The main advantage of trading using opposite Grupo Lamosa and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Lamosa 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.| Grupo Lamosa vs. Verizon Communications | Grupo Lamosa vs. United Airlines Holdings | Grupo Lamosa vs. DXC Technology | Grupo Lamosa vs. Cognizant Technology Solutions |
| Samsung Electronics vs. Lloyds Banking Group | Samsung Electronics vs. GMxico Transportes SAB | Samsung Electronics vs. New Oriental Education | Samsung Electronics vs. Martin Marietta Materials |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |