Correlation Between Samsung Electronics and Learning Technologies
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Learning Technologies 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 Learning Technologies 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 Learning Technologies Group, you can compare the effects of market volatilities on Samsung Electronics and Learning Technologies 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 Learning Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Learning Technologies.
Diversification Opportunities for Samsung Electronics and Learning Technologies
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Learning is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Learning Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Learning Technologies 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 Learning Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Learning Technologies has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Learning Technologies go up and down completely randomly.
Pair Corralation between Samsung Electronics and Learning Technologies
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Learning Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.7 times less risky than Learning Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Learning Technologies Group is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 13,723 in Learning Technologies Group on October 26, 2024 and sell it today you would lose (4,473) from holding Learning Technologies Group or give up 32.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Learning Technologies Group
Performance |
| Timeline |
| Samsung Electronics |
| Learning Technologies |
Samsung Electronics and Learning Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Learning Technologies
The main advantage of trading using opposite Samsung Electronics and Learning Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Learning Technologies 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 Learning Technologies will offset losses from the drop in Learning Technologies' long position.| Samsung Electronics vs. Cornish Metals | Samsung Electronics vs. Jacquet Metal Service | Samsung Electronics vs. Beowulf Mining | Samsung Electronics vs. Metals Exploration Plc |
| Learning Technologies vs. Catalyst Media Group | Learning Technologies vs. MediaZest plc | Learning Technologies vs. XLMedia PLC | Learning Technologies vs. Ecclesiastical Insurance Office |
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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