Correlation Between Samsung Electronics and Jost Werke
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Jost Werke 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 Jost Werke 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 Jost Werke AG, you can compare the effects of market volatilities on Samsung Electronics and Jost Werke 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 Jost Werke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Jost Werke.
Diversification Opportunities for Samsung Electronics and Jost Werke
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Jost is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Jost Werke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jost Werke AG 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 Jost Werke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jost Werke AG has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Jost Werke go up and down completely randomly.
Pair Corralation between Samsung Electronics and Jost Werke
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 2.39 times more return on investment than Jost Werke. However, Samsung Electronics is 2.39 times more volatile than Jost Werke AG. It trades about -0.04 of its potential returns per unit of risk. Jost Werke AG is currently generating about -0.15 per unit of risk. If you would invest 88,600 in Samsung Electronics Co on August 31, 2024 and sell it today you would lose (2,800) from holding Samsung Electronics Co or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samsung Electronics Co vs. Jost Werke AG
Performance |
| Timeline |
| Samsung Electronics |
| Jost Werke AG |
Samsung Electronics and Jost Werke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Jost Werke
The main advantage of trading using opposite Samsung Electronics and Jost Werke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Jost Werke 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 Jost Werke will offset losses from the drop in Jost Werke's long position.| Samsung Electronics vs. Kaufman Et Broad | Samsung Electronics vs. Allianz Technology Trust | Samsung Electronics vs. Monster Beverage Corp | Samsung Electronics vs. Gaztransport et Technigaz |
| Jost Werke vs. Impax Asset Management | Jost Werke vs. One Media iP | Jost Werke vs. Atresmedia | Jost Werke vs. Tatton Asset Management |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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