Correlation Between Samsung Electronics and AMG Advanced
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and AMG Advanced 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 AMG Advanced 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 AMG Advanced Metallurgical, you can compare the effects of market volatilities on Samsung Electronics and AMG Advanced 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 AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and AMG Advanced.
Diversification Opportunities for Samsung Electronics and AMG Advanced
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and AMG is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu 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 AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and AMG Advanced go up and down completely randomly.
Pair Corralation between Samsung Electronics and AMG Advanced
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.43 times more return on investment than AMG Advanced. However, Samsung Electronics is 1.43 times more volatile than AMG Advanced Metallurgical. It trades about 0.01 of its potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about -0.17 per unit of risk. If you would invest 88,300 in Samsung Electronics Co on August 29, 2024 and sell it today you would lose (100.00) from holding Samsung Electronics Co or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. AMG Advanced Metallurgical
Performance |
| Timeline |
| Samsung Electronics |
| AMG Advanced Metallu |
Samsung Electronics and AMG Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and AMG Advanced
The main advantage of trading using opposite Samsung Electronics and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, AMG Advanced 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 AMG Advanced will offset losses from the drop in AMG Advanced'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 |
| AMG Advanced vs. Samsung Electronics Co | AMG Advanced vs. Samsung Electronics Co | AMG Advanced vs. Hyundai Motor | AMG Advanced 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
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |