Correlation Between Samsung Electronics and Everyman Media
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Everyman Media 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 Everyman Media 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 Everyman Media Group, you can compare the effects of market volatilities on Samsung Electronics and Everyman Media 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 Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Everyman Media.
Diversification Opportunities for Samsung Electronics and Everyman Media
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Everyman is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media 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 Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Everyman Media go up and down completely randomly.
Pair Corralation between Samsung Electronics and Everyman Media
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.48 times more return on investment than Everyman Media. However, Samsung Electronics Co is 2.08 times less risky than Everyman Media. It trades about -0.02 of its potential returns per unit of risk. Everyman Media Group is currently generating about -0.33 per unit of risk. If you would invest 76,600 in Samsung Electronics Co on October 25, 2024 and sell it today you would lose (600.00) from holding Samsung Electronics Co or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Everyman Media Group
Performance |
| Timeline |
| Samsung Electronics |
| Everyman Media Group |
Samsung Electronics and Everyman Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Everyman Media
The main advantage of trading using opposite Samsung Electronics and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Everyman Media 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 Everyman Media will offset losses from the drop in Everyman Media's long position.| Samsung Electronics vs. Raytheon Technologies Corp | Samsung Electronics vs. Allianz Technology Trust | Samsung Electronics vs. Gaming Realms plc | Samsung Electronics vs. Roper Technologies |
| Everyman Media vs. Samsung Electronics Co | Everyman Media vs. Samsung Electronics Co | Everyman Media vs. Toyota Motor Corp | Everyman Media vs. Reliance Industries Ltd |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |