Correlation Between Samsung Electronics and Gaztransport
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Gaztransport 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 Gaztransport 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 Gaztransport et Technigaz, you can compare the effects of market volatilities on Samsung Electronics and Gaztransport 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 Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Gaztransport.
Diversification Opportunities for Samsung Electronics and Gaztransport
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Gaztransport is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Gaztransport et Technigaz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport et Technigaz 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 Gaztransport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport et Technigaz has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Gaztransport go up and down completely randomly.
Pair Corralation between Samsung Electronics and Gaztransport
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Gaztransport. In addition to that, Samsung Electronics is 1.01 times more volatile than Gaztransport et Technigaz. It trades about -0.03 of its total potential returns per unit of risk. Gaztransport et Technigaz is currently generating about 0.06 per unit of volatility. If you would invest 9,221 in Gaztransport et Technigaz on October 28, 2024 and sell it today you would earn a total of 5,384 from holding Gaztransport et Technigaz or generate 58.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Gaztransport et Technigaz
Performance |
| Timeline |
| Samsung Electronics |
| Gaztransport et Technigaz |
Samsung Electronics and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Gaztransport
The main advantage of trading using opposite Samsung Electronics and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Gaztransport 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 Gaztransport will offset losses from the drop in Gaztransport's long position.| Samsung Electronics vs. Canadian General Investments | Samsung Electronics vs. Spotify Technology SA | Samsung Electronics vs. Raytheon Technologies Corp | Samsung Electronics vs. Polar Capital Technology |
| Gaztransport vs. Berkshire Hathaway | Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Chocoladefabriken Lindt Spruengli |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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