Correlation Between Samsung Electronics and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Batm Advanced 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 Batm Advanced 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 Batm Advanced Communications, you can compare the effects of market volatilities on Samsung Electronics and Batm Advanced 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 Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Batm Advanced.
Diversification Opportunities for Samsung Electronics and Batm Advanced
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Batm is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Batm Advanced go up and down completely randomly.
Pair Corralation between Samsung Electronics and Batm Advanced
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Batm Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.45 times less risky than Batm Advanced. The stock trades about -0.15 of its potential returns per unit of risk. The Batm Advanced Communications is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,100 in Batm Advanced Communications on October 26, 2024 and sell it today you would lose (200.00) from holding Batm Advanced Communications or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Batm Advanced Communications
Performance |
| Timeline |
| Samsung Electronics |
| Batm Advanced Commun |
Samsung Electronics and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Batm Advanced
The main advantage of trading using opposite Samsung Electronics and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Toyota Motor Corp | Samsung Electronics vs. State Bank of | Samsung Electronics vs. SoftBank Group Corp |
| Batm Advanced vs. Toyota Motor Corp | Batm Advanced vs. SoftBank Group Corp | Batm Advanced vs. Halyk Bank of | Batm Advanced vs. Samsung Electronics Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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