Correlation Between Samsung Electronics and Kaufman Et
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Kaufman Et 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 Kaufman Et 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 Kaufman Et Broad, you can compare the effects of market volatilities on Samsung Electronics and Kaufman Et 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 Kaufman Et. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Kaufman Et.
Diversification Opportunities for Samsung Electronics and Kaufman Et
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Kaufman is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Kaufman Et Broad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaufman Et Broad 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 Kaufman Et. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaufman Et Broad has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Kaufman Et go up and down completely randomly.
Pair Corralation between Samsung Electronics and Kaufman Et
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 2.01 times more return on investment than Kaufman Et. However, Samsung Electronics is 2.01 times more volatile than Kaufman Et Broad. It trades about -0.04 of its potential returns per unit of risk. Kaufman Et Broad is currently generating about -0.22 per unit of risk. If you would invest 88,300 in Samsung Electronics Co on August 25, 2024 and sell it today you would lose (2,700) from holding Samsung Electronics Co or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Kaufman Et Broad
Performance |
| Timeline |
| Samsung Electronics |
| Kaufman Et Broad |
Samsung Electronics and Kaufman Et Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Kaufman Et
The main advantage of trading using opposite Samsung Electronics and Kaufman Et positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Kaufman Et 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 Kaufman Et will offset losses from the drop in Kaufman Et'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 |
| Kaufman Et vs. Samsung Electronics Co | Kaufman Et vs. Samsung Electronics Co | Kaufman Et vs. Hyundai Motor | Kaufman Et 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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