Correlation Between Samsung Electronics and MYCELX Technologies
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and MYCELX 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 MYCELX 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 MYCELX Technologies, you can compare the effects of market volatilities on Samsung Electronics and MYCELX 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 MYCELX Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and MYCELX Technologies.
Diversification Opportunities for Samsung Electronics and MYCELX Technologies
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and MYCELX is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and MYCELX Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYCELX 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 MYCELX Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYCELX Technologies has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and MYCELX Technologies go up and down completely randomly.
Pair Corralation between Samsung Electronics and MYCELX Technologies
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.03 times more return on investment than MYCELX Technologies. However, Samsung Electronics is 1.03 times more volatile than MYCELX Technologies. It trades about 0.01 of its potential returns per unit of risk. MYCELX Technologies is currently generating about -0.03 per unit of risk. If you would invest 88,300 in Samsung Electronics Co on August 28, 2024 and sell it today you would lose (300.00) from holding Samsung Electronics Co or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Samsung Electronics Co vs. MYCELX Technologies
Performance |
| Timeline |
| Samsung Electronics |
| MYCELX Technologies |
Samsung Electronics and MYCELX Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and MYCELX Technologies
The main advantage of trading using opposite Samsung Electronics and MYCELX Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, MYCELX 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 MYCELX Technologies will offset losses from the drop in MYCELX Technologies' long position.| Samsung Electronics vs. Royal Bank of | Samsung Electronics vs. Cembra Money Bank | Samsung Electronics vs. MT Bank Corp | Samsung Electronics vs. St Galler Kantonalbank |
| MYCELX Technologies vs. Toyota Motor Corp | MYCELX Technologies vs. SoftBank Group Corp | MYCELX Technologies vs. OTP Bank Nyrt | MYCELX Technologies vs. Las Vegas Sands |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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