Correlation Between Samsung Electronics and Hansa Trust
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Hansa Trust 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 Hansa Trust 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 Hansa Trust, you can compare the effects of market volatilities on Samsung Electronics and Hansa Trust 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 Hansa Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Hansa Trust.
Diversification Opportunities for Samsung Electronics and Hansa Trust
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Hansa is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Hansa Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansa Trust 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 Hansa Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansa Trust has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Hansa Trust go up and down completely randomly.
Pair Corralation between Samsung Electronics and Hansa Trust
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Hansa Trust. In addition to that, Samsung Electronics is 1.3 times more volatile than Hansa Trust. It trades about -0.07 of its total potential returns per unit of risk. Hansa Trust is currently generating about 0.05 per unit of volatility. If you would invest 19,804 in Hansa Trust on September 12, 2024 and sell it today you would earn a total of 3,596 from holding Hansa Trust or generate 18.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Samsung Electronics Co vs. Hansa Trust
Performance |
| Timeline |
| Samsung Electronics |
| Hansa Trust |
Samsung Electronics and Hansa Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Hansa Trust
The main advantage of trading using opposite Samsung Electronics and Hansa Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Hansa Trust 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 Hansa Trust will offset losses from the drop in Hansa Trust's long position.| Samsung Electronics vs. Norwegian Air Shuttle | Samsung Electronics vs. GreenX Metals | Samsung Electronics vs. AMG Advanced Metallurgical | Samsung Electronics vs. Gaztransport et Technigaz |
| Hansa Trust vs. Samsung Electronics Co | Hansa Trust vs. Samsung Electronics Co | Hansa Trust vs. Hyundai Motor | Hansa Trust vs. Toyota Motor Corp |
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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