Correlation Between Samsung Electronics and Metso Outotec
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Metso Outotec 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 Metso Outotec 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 Metso Outotec Corp, you can compare the effects of market volatilities on Samsung Electronics and Metso Outotec 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 Metso Outotec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Metso Outotec.
Diversification Opportunities for Samsung Electronics and Metso Outotec
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Metso is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Metso Outotec Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metso Outotec Corp 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 Metso Outotec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metso Outotec Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Metso Outotec go up and down completely randomly.
Pair Corralation between Samsung Electronics and Metso Outotec
If you would invest 0.00 in Metso Outotec Corp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Metso Outotec Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Samsung Electronics Co vs. Metso Outotec Corp
Performance |
| Timeline |
| Samsung Electronics |
| Metso Outotec Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Metso Outotec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Metso Outotec
The main advantage of trading using opposite Samsung Electronics and Metso Outotec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Metso Outotec 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 Metso Outotec will offset losses from the drop in Metso Outotec's long position.| Samsung Electronics vs. MyHealthChecked Plc | Samsung Electronics vs. HCA Healthcare | Samsung Electronics vs. Worldwide Healthcare Trust | Samsung Electronics vs. Norwegian Air Shuttle |
| Metso Outotec vs. Grieg Seafood | Metso Outotec vs. Universal Health Services | Metso Outotec vs. MyHealthChecked Plc | Metso Outotec vs. Induction Healthcare Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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