Correlation Between OFFICE DEPOT and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT 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 OFFICE DEPOT and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and Samsung Electronics Co, you can compare the effects of market volatilities on OFFICE DEPOT 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 OFFICE DEPOT with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and Samsung Electronics.
Diversification Opportunities for OFFICE DEPOT and Samsung Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and Samsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT i.e., OFFICE DEPOT and Samsung Electronics go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and Samsung Electronics
If you would invest 1,920 in OFFICE DEPOT on November 5, 2024 and sell it today you would earn a total of 0.00 from holding OFFICE DEPOT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
OFFICE DEPOT vs. Samsung Electronics Co
Performance |
| Timeline |
| OFFICE DEPOT |
| Samsung Electronics |
OFFICE DEPOT and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and Samsung Electronics
The main advantage of trading using opposite OFFICE DEPOT and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT 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.| OFFICE DEPOT vs. FORMPIPE SOFTWARE AB | OFFICE DEPOT vs. Broadridge Financial Solutions | OFFICE DEPOT vs. Magic Software Enterprises | OFFICE DEPOT vs. VITEC SOFTWARE GROUP |
| Samsung Electronics vs. MCEWEN MINING INC | Samsung Electronics vs. Perseus Mining Limited | Samsung Electronics vs. Tyson Foods | Samsung Electronics vs. CORNISH METALS INC |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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