Correlation Between Samsung Electronics and Gedeon Richter
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Gedeon Richter 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 Gedeon Richter 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 Gedeon Richter PLC, you can compare the effects of market volatilities on Samsung Electronics and Gedeon Richter 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 Gedeon Richter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Gedeon Richter.
Diversification Opportunities for Samsung Electronics and Gedeon Richter
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Gedeon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Gedeon Richter PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gedeon Richter PLC 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 Gedeon Richter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gedeon Richter PLC has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Gedeon Richter go up and down completely randomly.
Pair Corralation between Samsung Electronics and Gedeon Richter
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Gedeon Richter. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 4.17 times less risky than Gedeon Richter. The stock trades about 0.0 of its potential returns per unit of risk. The Gedeon Richter PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 503,177 in Gedeon Richter PLC on August 29, 2024 and sell it today you would earn a total of 823.00 from holding Gedeon Richter PLC or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Samsung Electronics Co vs. Gedeon Richter PLC
Performance |
| Timeline |
| Samsung Electronics |
| Gedeon Richter PLC |
Samsung Electronics and Gedeon Richter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Gedeon Richter
The main advantage of trading using opposite Samsung Electronics and Gedeon Richter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Gedeon Richter 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 Gedeon Richter will offset losses from the drop in Gedeon Richter's long position.| Samsung Electronics vs. Ondine Biomedical | Samsung Electronics vs. Europa Metals | Samsung Electronics vs. Lendinvest PLC | Samsung Electronics vs. Neometals |
| Gedeon Richter vs. Coor Service Management | Gedeon Richter vs. The Mercantile Investment | Gedeon Richter vs. Kinnevik Investment AB | Gedeon Richter vs. Oakley Capital Investments |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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