Correlation Between Samsung Electronics and Mobilezone Holding
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Mobilezone Holding 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 Mobilezone Holding 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 mobilezone holding AG, you can compare the effects of market volatilities on Samsung Electronics and Mobilezone Holding 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 Mobilezone Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Mobilezone Holding.
Diversification Opportunities for Samsung Electronics and Mobilezone Holding
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Mobilezone is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and mobilezone holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone holding 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 Mobilezone Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone holding has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Mobilezone Holding go up and down completely randomly.
Pair Corralation between Samsung Electronics and Mobilezone Holding
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Mobilezone Holding. In addition to that, Samsung Electronics is 1.46 times more volatile than mobilezone holding AG. It trades about -0.02 of its total potential returns per unit of risk. mobilezone holding AG is currently generating about 0.01 per unit of volatility. If you would invest 1,371 in mobilezone holding AG on August 25, 2024 and sell it today you would earn a total of 41.00 from holding mobilezone holding AG or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.27% |
| Values | Daily Returns |
Samsung Electronics Co vs. mobilezone holding AG
Performance |
| Timeline |
| Samsung Electronics |
| mobilezone holding |
Samsung Electronics and Mobilezone Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Mobilezone Holding
The main advantage of trading using opposite Samsung Electronics and Mobilezone Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Mobilezone Holding 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 Mobilezone Holding will offset losses from the drop in Mobilezone Holding'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 |
| Mobilezone Holding vs. Samsung Electronics Co | Mobilezone Holding vs. Samsung Electronics Co | Mobilezone Holding vs. Hyundai Motor | Mobilezone Holding 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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