Correlation Between Samsung Electronics and Jadestone Energy
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Jadestone Energy 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 Jadestone Energy 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 Jadestone Energy, you can compare the effects of market volatilities on Samsung Electronics and Jadestone Energy 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 Jadestone Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Jadestone Energy.
Diversification Opportunities for Samsung Electronics and Jadestone Energy
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Jadestone is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Jadestone Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadestone Energy 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 Jadestone Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadestone Energy has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Jadestone Energy go up and down completely randomly.
Pair Corralation between Samsung Electronics and Jadestone Energy
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Jadestone Energy. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.09 times less risky than Jadestone Energy. The stock trades about -0.1 of its potential returns per unit of risk. The Jadestone Energy is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 3,075 in Jadestone Energy on September 1, 2024 and sell it today you would lose (575.00) from holding Jadestone Energy or give up 18.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
Samsung Electronics Co vs. Jadestone Energy
Performance |
| Timeline |
| Samsung Electronics |
| Jadestone Energy |
Samsung Electronics and Jadestone Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Jadestone Energy
The main advantage of trading using opposite Samsung Electronics and Jadestone Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Jadestone Energy 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 Jadestone Energy will offset losses from the drop in Jadestone Energy's long position.| Samsung Electronics vs. Roebuck Food Group | Samsung Electronics vs. Molson Coors Beverage | Samsung Electronics vs. United Utilities Group | Samsung Electronics vs. Premier Foods PLC |
| Jadestone Energy vs. Ally Financial | Jadestone Energy vs. Hochschild Mining plc | Jadestone Energy vs. Sydbank | Jadestone Energy vs. Metals Exploration Plc |
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 CEOs Directory module to screen CEOs from public companies around the world.
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