Correlation Between Panasonic Corp and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Panasonic Corp 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 Panasonic Corp and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panasonic Corp and Samsung Electronics Co, you can compare the effects of market volatilities on Panasonic Corp 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 Panasonic Corp with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panasonic Corp and Samsung Electronics.
Diversification Opportunities for Panasonic Corp and Samsung Electronics
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panasonic and Samsung is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Panasonic Corp and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Panasonic Corp 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 Panasonic Corp 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 Panasonic Corp i.e., Panasonic Corp and Samsung Electronics go up and down completely randomly.
Pair Corralation between Panasonic Corp and Samsung Electronics
Assuming the 90 days trading horizon Panasonic Corp is expected to generate 1.03 times more return on investment than Samsung Electronics. However, Panasonic Corp is 1.03 times more volatile than Samsung Electronics Co. It trades about 0.01 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.03 per unit of risk. If you would invest 936.00 in Panasonic Corp on August 24, 2024 and sell it today you would lose (10.00) from holding Panasonic Corp or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panasonic Corp vs. Samsung Electronics Co
Performance |
| Timeline |
| Panasonic Corp |
| Samsung Electronics |
Panasonic Corp and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panasonic Corp and Samsung Electronics
The main advantage of trading using opposite Panasonic Corp and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panasonic Corp 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.| Panasonic Corp vs. Sony Group | Panasonic Corp vs. Origin Agritech | Panasonic Corp vs. SIVERS SEMICONDUCTORS AB | Panasonic Corp vs. Talanx AG |
| Samsung Electronics vs. Sony Group | Samsung Electronics vs. Origin Agritech | Samsung Electronics vs. SIVERS SEMICONDUCTORS AB | Samsung Electronics vs. Talanx AG |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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