Correlation Between Samsung Electronics and North Atlantic

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Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and North Atlantic 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 North Atlantic 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 North Atlantic Smaller, you can compare the effects of market volatilities on Samsung Electronics and North Atlantic 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 North Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and North Atlantic.

Diversification Opportunities for Samsung Electronics and North Atlantic

SamsungNorthDiversified AwaySamsungNorthDiversified Away100%
0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Samsung and North is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and North Atlantic Smaller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Atlantic Smaller 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 North Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Atlantic Smaller has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and North Atlantic go up and down completely randomly.

Pair Corralation between Samsung Electronics and North Atlantic

If you would invest  0.00  in North Atlantic Smaller on September 19, 2024 and sell it today you would earn a total of  0.00  from holding North Atlantic Smaller or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy4.55%
ValuesDaily Returns

Samsung Electronics Co  vs.  North Atlantic Smaller

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -20-15-10-505
JavaScript chart by amCharts 3.21.15SMSD NAS
       Timeline  
Samsung Electronics 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Samsung Electronics Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec8008509009501,000
North Atlantic Smaller 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days North Atlantic Smaller has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Samsung Electronics and North Atlantic Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.76-2.81-1.87-0.930.01350.811.622.433.24 0.050.100.150.20
JavaScript chart by amCharts 3.21.15SMSD NAS
       Returns  

Pair Trading with Samsung Electronics and North Atlantic

The main advantage of trading using opposite Samsung Electronics and North Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, North Atlantic 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 North Atlantic will offset losses from the drop in North Atlantic's long position.
The idea behind Samsung Electronics Co and North Atlantic Smaller pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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