Correlation Between Samsung Electronics and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Vienna Insurance 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 Vienna Insurance 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 Vienna Insurance Group, you can compare the effects of market volatilities on Samsung Electronics and Vienna Insurance 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Vienna Insurance.
Diversification Opportunities for Samsung Electronics and Vienna Insurance
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Vienna is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Vienna Insurance go up and down completely randomly.
Pair Corralation between Samsung Electronics and Vienna Insurance
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Vienna Insurance. In addition to that, Samsung Electronics is 1.81 times more volatile than Vienna Insurance Group. It trades about -0.29 of its total potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.4 per unit of volatility. If you would invest 3,043 in Vienna Insurance Group on November 5, 2024 and sell it today you would earn a total of 195.00 from holding Vienna Insurance Group or generate 6.41% 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. Vienna Insurance Group
Performance |
| Timeline |
| Samsung Electronics |
| Vienna Insurance |
Samsung Electronics and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Vienna Insurance
The main advantage of trading using opposite Samsung Electronics and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| Samsung Electronics vs. Gamma Communications PLC | Samsung Electronics vs. Hilton Food Group | Samsung Electronics vs. Trainline Plc | Samsung Electronics vs. Ebro Foods |
| Vienna Insurance vs. Alien Metals | Vienna Insurance vs. Vitec Software Group | Vienna Insurance vs. Bytes Technology | Vienna Insurance vs. Fulcrum Metals PLC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |