Correlation Between Samsung Electronics and Moonpig Group
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Moonpig Group 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 Moonpig Group 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 Moonpig Group PLC, you can compare the effects of market volatilities on Samsung Electronics and Moonpig Group 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 Moonpig Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Moonpig Group.
Diversification Opportunities for Samsung Electronics and Moonpig Group
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Moonpig is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Moonpig Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moonpig Group 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 Moonpig Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moonpig Group PLC has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Moonpig Group go up and down completely randomly.
Pair Corralation between Samsung Electronics and Moonpig Group
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Moonpig Group. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.15 times less risky than Moonpig Group. The stock trades about -0.09 of its potential returns per unit of risk. The Moonpig Group PLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 15,940 in Moonpig Group PLC on August 30, 2024 and sell it today you would earn a total of 8,860 from holding Moonpig Group PLC or generate 55.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Moonpig Group PLC
Performance |
| Timeline |
| Samsung Electronics |
| Moonpig Group PLC |
Samsung Electronics and Moonpig Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Moonpig Group
The main advantage of trading using opposite Samsung Electronics and Moonpig Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Moonpig Group 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 Moonpig Group will offset losses from the drop in Moonpig Group's long position.| Samsung Electronics vs. Litigation Capital Management | Samsung Electronics vs. Liontrust Asset Management | Samsung Electronics vs. Invesco Physical Silver | Samsung Electronics vs. Westlake Chemical Corp |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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