Correlation Between Samsung Electronics and Accesso Technology
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Accesso Technology 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 Accesso Technology 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 Accesso Technology Group, you can compare the effects of market volatilities on Samsung Electronics and Accesso Technology 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 Accesso Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Accesso Technology.
Diversification Opportunities for Samsung Electronics and Accesso Technology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samsung and Accesso is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Accesso Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accesso Technology 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 Accesso Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accesso Technology has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Accesso Technology go up and down completely randomly.
Pair Corralation between Samsung Electronics and Accesso Technology
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Accesso Technology. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.75 times less risky than Accesso Technology. The stock trades about -0.18 of its potential returns per unit of risk. The Accesso Technology Group is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 52,200 in Accesso Technology Group on November 7, 2024 and sell it today you would lose (2,600) from holding Accesso Technology Group or give up 4.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samsung Electronics Co vs. Accesso Technology Group
Performance |
| Timeline |
| Samsung Electronics |
| Accesso Technology |
Samsung Electronics and Accesso Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Accesso Technology
The main advantage of trading using opposite Samsung Electronics and Accesso Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Accesso Technology 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 Accesso Technology will offset losses from the drop in Accesso Technology's long position.| Samsung Electronics vs. Auto Trader Group | Samsung Electronics vs. Aptitude Software Group | Samsung Electronics vs. Universal Music Group | Samsung Electronics vs. Travel Leisure Co |
| Accesso Technology vs. Capital Metals PLC | Accesso Technology vs. JLEN Environmental Assets | Accesso Technology vs. Tata Steel Limited | Accesso Technology vs. Sovereign Metals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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