Correlation Between Samsung Electronics and Flow Traders
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Flow Traders 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 Flow Traders 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 Flow Traders NV, you can compare the effects of market volatilities on Samsung Electronics and Flow Traders 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 Flow Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Flow Traders.
Diversification Opportunities for Samsung Electronics and Flow Traders
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Flow is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Flow Traders NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Traders NV 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 Flow Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Traders NV has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Flow Traders go up and down completely randomly.
Pair Corralation between Samsung Electronics and Flow Traders
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Flow Traders. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.13 times less risky than Flow Traders. The stock trades about -0.06 of its potential returns per unit of risk. The Flow Traders NV is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,719 in Flow Traders NV on September 4, 2024 and sell it today you would earn a total of 375.00 from holding Flow Traders NV or generate 21.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Flow Traders NV
Performance |
| Timeline |
| Samsung Electronics |
| Flow Traders NV |
Samsung Electronics and Flow Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Flow Traders
The main advantage of trading using opposite Samsung Electronics and Flow Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Flow Traders 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 Flow Traders will offset losses from the drop in Flow Traders' long position.| Samsung Electronics vs. MTI Wireless Edge | Samsung Electronics vs. Ecclesiastical Insurance Office | Samsung Electronics vs. Pets at Home | Samsung Electronics vs. Norwegian Air Shuttle |
| Flow Traders vs. Samsung Electronics Co | Flow Traders vs. Samsung Electronics Co | Flow Traders vs. Hyundai Motor | Flow Traders 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |