Correlation Between Samsung Electronics and Alkemy Capital
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Alkemy Capital 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 Alkemy Capital 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 Alkemy Capital Investments, you can compare the effects of market volatilities on Samsung Electronics and Alkemy Capital 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 Alkemy Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Alkemy Capital.
Diversification Opportunities for Samsung Electronics and Alkemy Capital
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Alkemy is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Alkemy Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkemy Capital Inves 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 Alkemy Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkemy Capital Inves has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Alkemy Capital go up and down completely randomly.
Pair Corralation between Samsung Electronics and Alkemy Capital
Assuming the 90 days trading horizon Samsung Electronics is expected to generate 8.41 times less return on investment than Alkemy Capital. But when comparing it to its historical volatility, Samsung Electronics Co is 1.66 times less risky than Alkemy Capital. It trades about 0.05 of its potential returns per unit of risk. Alkemy Capital Investments is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 9,750 in Alkemy Capital Investments on September 13, 2024 and sell it today you would earn a total of 2,750 from holding Alkemy Capital Investments or generate 28.21% 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. Alkemy Capital Investments
Performance |
| Timeline |
| Samsung Electronics |
| Alkemy Capital Inves |
Samsung Electronics and Alkemy Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Alkemy Capital
The main advantage of trading using opposite Samsung Electronics and Alkemy Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Alkemy Capital 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 Alkemy Capital will offset losses from the drop in Alkemy Capital's long position.| Samsung Electronics vs. MyHealthChecked Plc | Samsung Electronics vs. HCA Healthcare | Samsung Electronics vs. Worldwide Healthcare Trust | Samsung Electronics vs. Norwegian Air Shuttle |
| Alkemy Capital vs. Catalyst Media Group | Alkemy Capital vs. CATLIN GROUP | Alkemy Capital vs. Tamburi Investment Partners | Alkemy Capital vs. Magnora ASA |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |