Correlation Between Samsung Electronics and Summit Materials
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Summit Materials 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 Summit Materials 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 Summit Materials Cl, you can compare the effects of market volatilities on Samsung Electronics and Summit Materials 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 Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Summit Materials.
Diversification Opportunities for Samsung Electronics and Summit Materials
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Summit is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Summit Materials Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials 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 Summit Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Materials has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Summit Materials go up and down completely randomly.
Pair Corralation between Samsung Electronics and Summit Materials
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Summit Materials. In addition to that, Samsung Electronics is 1.11 times more volatile than Summit Materials Cl. It trades about -0.04 of its total potential returns per unit of risk. Summit Materials Cl is currently generating about 0.24 per unit of volatility. If you would invest 4,565 in Summit Materials Cl on August 27, 2024 and sell it today you would earn a total of 567.00 from holding Summit Materials Cl or generate 12.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Summit Materials Cl
Performance |
| Timeline |
| Samsung Electronics |
| Summit Materials |
Samsung Electronics and Summit Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Summit Materials
The main advantage of trading using opposite Samsung Electronics and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Summit Materials 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 Summit Materials will offset losses from the drop in Summit Materials' long position.| Samsung Electronics vs. Royal Bank of | Samsung Electronics vs. Cembra Money Bank | Samsung Electronics vs. MT Bank Corp | Samsung Electronics vs. St Galler Kantonalbank |
| Summit Materials vs. Samsung Electronics Co | Summit Materials vs. Samsung Electronics Co | Summit Materials vs. Hyundai Motor | Summit Materials 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |