Correlation Between OneSavings Bank and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both OneSavings Bank 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 OneSavings Bank and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneSavings Bank PLC and Samsung Electronics Co, you can compare the effects of market volatilities on OneSavings Bank 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 OneSavings Bank with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSavings Bank and Samsung Electronics.
Diversification Opportunities for OneSavings Bank and Samsung Electronics
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between OneSavings and Samsung is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding OneSavings Bank PLC and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and OneSavings Bank 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 OneSavings Bank PLC 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 OneSavings Bank i.e., OneSavings Bank and Samsung Electronics go up and down completely randomly.
Pair Corralation between OneSavings Bank and Samsung Electronics
Assuming the 90 days trading horizon OneSavings Bank PLC is expected to generate 1.2 times more return on investment than Samsung Electronics. However, OneSavings Bank is 1.2 times more volatile than Samsung Electronics Co. It trades about -0.02 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.1 per unit of risk. If you would invest 45,178 in OneSavings Bank PLC on September 3, 2024 and sell it today you would lose (4,938) from holding OneSavings Bank PLC or give up 10.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSavings Bank PLC vs. Samsung Electronics Co
Performance |
| Timeline |
| OneSavings Bank PLC |
| Samsung Electronics |
OneSavings Bank and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSavings Bank and Samsung Electronics
The main advantage of trading using opposite OneSavings Bank and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSavings Bank 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.| OneSavings Bank vs. Check Point Software | OneSavings Bank vs. Centaur Media | OneSavings Bank vs. Alfa Financial Software | OneSavings Bank vs. Compal Electronics GDR |
| Samsung Electronics vs. Coeur Mining | Samsung Electronics vs. Zoom Video Communications | Samsung Electronics vs. mobilezone holding AG | Samsung Electronics vs. Thor Mining PLC |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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