Correlation Between INSURANCE AUST and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both INSURANCE AUST 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 INSURANCE AUST and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INSURANCE AUST GRP and Samsung Electronics Co, you can compare the effects of market volatilities on INSURANCE AUST 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 INSURANCE AUST with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of INSURANCE AUST and Samsung Electronics.
Diversification Opportunities for INSURANCE AUST and Samsung Electronics
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INSURANCE and Samsung is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding INSURANCE AUST GRP and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and INSURANCE AUST 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 INSURANCE AUST GRP 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 INSURANCE AUST i.e., INSURANCE AUST and Samsung Electronics go up and down completely randomly.
Pair Corralation between INSURANCE AUST and Samsung Electronics
Assuming the 90 days trading horizon INSURANCE AUST GRP is expected to generate 0.87 times more return on investment than Samsung Electronics. However, INSURANCE AUST GRP is 1.14 times less risky than Samsung Electronics. It trades about 0.03 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.19 per unit of risk. If you would invest 492.00 in INSURANCE AUST GRP on September 22, 2024 and sell it today you would earn a total of 4.00 from holding INSURANCE AUST GRP or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INSURANCE AUST GRP vs. Samsung Electronics Co
Performance |
| Timeline |
| INSURANCE AUST GRP |
| Samsung Electronics |
INSURANCE AUST and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INSURANCE AUST and Samsung Electronics
The main advantage of trading using opposite INSURANCE AUST and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INSURANCE AUST 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.| INSURANCE AUST vs. DAIRY FARM INTL | INSURANCE AUST vs. Sterling Construction | INSURANCE AUST vs. Entravision Communications | INSURANCE AUST vs. Australian Agricultural |
| Samsung Electronics vs. INSURANCE AUST GRP | Samsung Electronics vs. MCEWEN MINING INC | Samsung Electronics vs. Selective Insurance Group | Samsung Electronics vs. Universal Insurance 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |