Correlation Between Samsung Electronics and Miton UK
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Miton UK 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 Miton UK 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 Miton UK MicroCap, you can compare the effects of market volatilities on Samsung Electronics and Miton UK 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 Miton UK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Miton UK.
Diversification Opportunities for Samsung Electronics and Miton UK
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Miton is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Miton UK MicroCap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miton UK MicroCap 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 Miton UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miton UK MicroCap has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Miton UK go up and down completely randomly.
Pair Corralation between Samsung Electronics and Miton UK
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 5.58 times more return on investment than Miton UK. However, Samsung Electronics is 5.58 times more volatile than Miton UK MicroCap. It trades about 0.05 of its potential returns per unit of risk. Miton UK MicroCap is currently generating about 0.21 per unit of risk. If you would invest 79,500 in Samsung Electronics Co on September 13, 2024 and sell it today you would earn a total of 1,700 from holding Samsung Electronics Co or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Miton UK MicroCap
Performance |
| Timeline |
| Samsung Electronics |
| Miton UK MicroCap |
Samsung Electronics and Miton UK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Miton UK
The main advantage of trading using opposite Samsung Electronics and Miton UK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Miton UK 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 Miton UK will offset losses from the drop in Miton UK'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 |
| Miton UK vs. Catalyst Media Group | Miton UK vs. CATLIN GROUP | Miton UK vs. Tamburi Investment Partners | Miton UK vs. Magnora ASA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |