Correlation Between Samsung Electronics and St Galler
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and St Galler 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 St Galler 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 St Galler Kantonalbank, you can compare the effects of market volatilities on Samsung Electronics and St Galler 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 St Galler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and St Galler.
Diversification Opportunities for Samsung Electronics and St Galler
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and 0QQZ is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and St Galler Kantonalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Galler Kantonalbank 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 St Galler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Galler Kantonalbank has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and St Galler go up and down completely randomly.
Pair Corralation between Samsung Electronics and St Galler
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the St Galler. In addition to that, Samsung Electronics is 2.14 times more volatile than St Galler Kantonalbank. It trades about -0.02 of its total potential returns per unit of risk. St Galler Kantonalbank is currently generating about -0.04 per unit of volatility. If you would invest 48,623 in St Galler Kantonalbank on August 27, 2024 and sell it today you would lose (6,573) from holding St Galler Kantonalbank or give up 13.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Samsung Electronics Co vs. St Galler Kantonalbank
Performance |
| Timeline |
| Samsung Electronics |
| St Galler Kantonalbank |
Samsung Electronics and St Galler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and St Galler
The main advantage of trading using opposite Samsung Electronics and St Galler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, St Galler 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 St Galler will offset losses from the drop in St Galler'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 |
| St Galler vs. Samsung Electronics Co | St Galler vs. Samsung Electronics Co | St Galler vs. Hyundai Motor | St Galler 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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