Correlation Between Samsung Electronics and IXICO PLC
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and IXICO PLC 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 IXICO PLC 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 IXICO PLC, you can compare the effects of market volatilities on Samsung Electronics and IXICO PLC 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 IXICO PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and IXICO PLC.
Diversification Opportunities for Samsung Electronics and IXICO PLC
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and IXICO is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and IXICO PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IXICO PLC 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 IXICO PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IXICO PLC has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and IXICO PLC go up and down completely randomly.
Pair Corralation between Samsung Electronics and IXICO PLC
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the IXICO PLC. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 2.02 times less risky than IXICO PLC. The stock trades about -0.22 of its potential returns per unit of risk. The IXICO PLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in IXICO PLC on September 19, 2024 and sell it today you would earn a total of 150.00 from holding IXICO PLC or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samsung Electronics Co vs. IXICO PLC
Performance |
| Timeline |
| Samsung Electronics |
| IXICO PLC |
Samsung Electronics and IXICO PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and IXICO PLC
The main advantage of trading using opposite Samsung Electronics and IXICO PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, IXICO PLC 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 IXICO PLC will offset losses from the drop in IXICO PLC's long position.| Samsung Electronics vs. Rockfire Resources plc | Samsung Electronics vs. Tlou Energy | Samsung Electronics vs. Ikigai Ventures | Samsung Electronics vs. Falcon Oil Gas |
| IXICO PLC vs. Neometals | IXICO PLC vs. Scandic Hotels Group | IXICO PLC vs. Endeavour Mining Corp | IXICO PLC vs. Ross Stores |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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