Correlation Between Samsung Electronics and Keystone Law
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Keystone Law 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 Keystone Law 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 Keystone Law Group, you can compare the effects of market volatilities on Samsung Electronics and Keystone Law 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 Keystone Law. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Keystone Law.
Diversification Opportunities for Samsung Electronics and Keystone Law
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Keystone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Keystone Law Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keystone Law 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 Keystone Law. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keystone Law Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Keystone Law go up and down completely randomly.
Pair Corralation between Samsung Electronics and Keystone Law
If you would invest 72,300 in Samsung Electronics Co on December 4, 2024 and sell it today you would earn a total of 4,400 from holding Samsung Electronics Co or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Keystone Law Group
Performance |
| Timeline |
| Samsung Electronics |
| Keystone Law Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Samsung Electronics and Keystone Law Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Keystone Law
The main advantage of trading using opposite Samsung Electronics and Keystone Law positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Keystone Law 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 Keystone Law will offset losses from the drop in Keystone Law's long position.| Samsung Electronics vs. InterContinental Hotels Group | Samsung Electronics vs. Bloomsbury Publishing Plc | Samsung Electronics vs. Critical Metals Plc | Samsung Electronics vs. Compagnie Plastic Omnium |
| Keystone Law vs. Auto Trader Group | Keystone Law vs. Bloomsbury Publishing Plc | Keystone Law vs. GlobalData PLC | Keystone Law vs. Alliance Data Systems |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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