Correlation Between Samsung Electronics and SBM Offshore
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and SBM Offshore 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 SBM Offshore 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 SBM Offshore NV, you can compare the effects of market volatilities on Samsung Electronics and SBM Offshore 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 SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and SBM Offshore.
Diversification Opportunities for Samsung Electronics and SBM Offshore
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and SBM is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV 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 SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and SBM Offshore go up and down completely randomly.
Pair Corralation between Samsung Electronics and SBM Offshore
Assuming the 90 days trading horizon Samsung Electronics is expected to generate 14.71 times less return on investment than SBM Offshore. In addition to that, Samsung Electronics is 1.3 times more volatile than SBM Offshore NV. It trades about 0.01 of its total potential returns per unit of risk. SBM Offshore NV is currently generating about 0.15 per unit of volatility. If you would invest 1,654 in SBM Offshore NV on August 28, 2024 and sell it today you would earn a total of 106.00 from holding SBM Offshore NV or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. SBM Offshore NV
Performance |
| Timeline |
| Samsung Electronics |
| SBM Offshore NV |
Samsung Electronics and SBM Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and SBM Offshore
The main advantage of trading using opposite Samsung Electronics and SBM Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, SBM Offshore 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 SBM Offshore will offset losses from the drop in SBM Offshore's 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 |
| SBM Offshore vs. Zoom Video Communications | SBM Offshore vs. Enbridge | SBM Offshore vs. Endo International PLC | SBM Offshore vs. Diversified Energy |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |