Correlation Between Samsung Electronics and Deltex Medical
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Deltex Medical 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 Deltex Medical 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 Deltex Medical Group, you can compare the effects of market volatilities on Samsung Electronics and Deltex Medical 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 Deltex Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Deltex Medical.
Diversification Opportunities for Samsung Electronics and Deltex Medical
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and Deltex is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Deltex Medical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deltex Medical Group 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 Deltex Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deltex Medical Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Deltex Medical go up and down completely randomly.
Pair Corralation between Samsung Electronics and Deltex Medical
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.13 times more return on investment than Deltex Medical. However, Samsung Electronics Co is 7.51 times less risky than Deltex Medical. It trades about 0.26 of its potential returns per unit of risk. Deltex Medical Group is currently generating about -0.1 per unit of risk. If you would invest 73,500 in Samsung Electronics Co on November 28, 2024 and sell it today you would earn a total of 8,100 from holding Samsung Electronics Co or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Samsung Electronics Co vs. Deltex Medical Group
Performance |
| Timeline |
| Samsung Electronics |
| Deltex Medical Group |
Samsung Electronics and Deltex Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Deltex Medical
The main advantage of trading using opposite Samsung Electronics and Deltex Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Deltex Medical 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 Deltex Medical will offset losses from the drop in Deltex Medical's long position.| Samsung Electronics vs. Impax Environmental Markets | Samsung Electronics vs. Bell Food Group | Samsung Electronics vs. Austevoll Seafood ASA | Samsung Electronics vs. Westlake Chemical Corp |
| Deltex Medical vs. Resolute Mining Limited | Deltex Medical vs. Automatic Data Processing | Deltex Medical vs. Empire Metals Limited | Deltex Medical vs. GreenX 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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