Correlation Between Samsung Electronics and Compagnie Plastic
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Compagnie Plastic 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 Compagnie Plastic 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 Compagnie Plastic Omnium, you can compare the effects of market volatilities on Samsung Electronics and Compagnie Plastic 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 Compagnie Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Compagnie Plastic.
Diversification Opportunities for Samsung Electronics and Compagnie Plastic
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Compagnie is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Compagnie Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie Plastic Omnium 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 Compagnie Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie Plastic Omnium has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Compagnie Plastic go up and down completely randomly.
Pair Corralation between Samsung Electronics and Compagnie Plastic
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.79 times more return on investment than Compagnie Plastic. However, Samsung Electronics Co is 1.27 times less risky than Compagnie Plastic. It trades about 0.0 of its potential returns per unit of risk. Compagnie Plastic Omnium is currently generating about -0.13 per unit of risk. If you would invest 86,500 in Samsung Electronics Co on August 26, 2024 and sell it today you would lose (900.00) from holding Samsung Electronics Co or give up 1.04% 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. Compagnie Plastic Omnium
Performance |
| Timeline |
| Samsung Electronics |
| Compagnie Plastic Omnium |
Samsung Electronics and Compagnie Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Compagnie Plastic
The main advantage of trading using opposite Samsung Electronics and Compagnie Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Compagnie Plastic 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 Compagnie Plastic will offset losses from the drop in Compagnie Plastic'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 |
| Compagnie Plastic vs. Samsung Electronics Co | Compagnie Plastic vs. Samsung Electronics Co | Compagnie Plastic vs. Hyundai Motor | Compagnie Plastic 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |