Correlation Between Samsung Electronics and Surgical Science
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Surgical Science 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 Samsung Electronics and Surgical Science into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Surgical Science Sweden, you can compare the effects of market volatilities on Samsung Electronics and Surgical Science 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 Samsung Electronics with a short position of Surgical Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Surgical Science.
Diversification Opportunities for Samsung Electronics and Surgical Science
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Surgical is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Surgical Science Sweden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surgical Science Sweden and Samsung Electronics 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 Samsung Electronics Co are associated (or correlated) with Surgical Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surgical Science Sweden has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Surgical Science go up and down completely randomly.
Pair Corralation between Samsung Electronics and Surgical Science
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.56 times more return on investment than Surgical Science. However, Samsung Electronics Co is 1.79 times less risky than Surgical Science. It trades about -0.03 of its potential returns per unit of risk. Surgical Science Sweden is currently generating about -0.03 per unit of risk. If you would invest 107,473 in Samsung Electronics Co on August 26, 2024 and sell it today you would lose (21,873) from holding Samsung Electronics Co or give up 20.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.82% |
| Values | Daily Returns |
Samsung Electronics Co vs. Surgical Science Sweden
Performance |
| Timeline |
| Samsung Electronics |
| Surgical Science Sweden |
Samsung Electronics and Surgical Science Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Surgical Science
The main advantage of trading using opposite Samsung Electronics and Surgical Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Surgical Science 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 Surgical Science will offset losses from the drop in Surgical Science's long position.| Samsung Electronics vs. Toyota Motor Corp | Samsung Electronics vs. SoftBank Group Corp | Samsung Electronics vs. OTP Bank Nyrt | Samsung Electronics vs. Las Vegas Sands |
| Surgical Science vs. Samsung Electronics Co | Surgical Science vs. Samsung Electronics Co | Surgical Science vs. Hyundai Motor | Surgical Science vs. Toyota Motor Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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