Correlation Between Samsung Electronics and Bet At
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Bet At 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 Bet At 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 bet at home AG, you can compare the effects of market volatilities on Samsung Electronics and Bet At 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 Bet At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Bet At.
Diversification Opportunities for Samsung Electronics and Bet At
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and Bet is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and bet at home AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on bet at home 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 Bet At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of bet at home has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Bet At go up and down completely randomly.
Pair Corralation between Samsung Electronics and Bet At
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Bet At. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.67 times less risky than Bet At. The stock trades about -0.04 of its potential returns per unit of risk. The bet at home AG is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 246.00 in bet at home AG on November 2, 2024 and sell it today you would earn a total of 41.00 from holding bet at home AG or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. bet at home AG
Performance |
| Timeline |
| Samsung Electronics |
| bet at home |
Samsung Electronics and Bet At Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Bet At
The main advantage of trading using opposite Samsung Electronics and Bet At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Bet At 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 Bet At will offset losses from the drop in Bet At's long position.| Samsung Electronics vs. British American Tobacco | Samsung Electronics vs. Aeorema Communications Plc | Samsung Electronics vs. Sabre Insurance Group | Samsung Electronics vs. Litigation Capital Management |
| Bet At vs. Omega Healthcare Investors | Bet At vs. Bellevue Healthcare Trust | Bet At vs. Futura Medical | Bet At vs. Abingdon Health Plc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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