Correlation Between Samsung Electronics and Primorus Investments
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Primorus Investments 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 Primorus Investments 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 Primorus Investments plc, you can compare the effects of market volatilities on Samsung Electronics and Primorus Investments 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 Primorus Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Primorus Investments.
Diversification Opportunities for Samsung Electronics and Primorus Investments
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Primorus is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Primorus Investments plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primorus Investments 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 Primorus Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primorus Investments plc has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Primorus Investments go up and down completely randomly.
Pair Corralation between Samsung Electronics and Primorus Investments
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.9 times more return on investment than Primorus Investments. However, Samsung Electronics Co is 1.11 times less risky than Primorus Investments. It trades about 0.05 of its potential returns per unit of risk. Primorus Investments plc is currently generating about -0.04 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 Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Primorus Investments plc
Performance |
| Timeline |
| Samsung Electronics |
| Primorus Investments plc |
Samsung Electronics and Primorus Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Primorus Investments
The main advantage of trading using opposite Samsung Electronics and Primorus Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Primorus Investments 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 Primorus Investments will offset losses from the drop in Primorus Investments' long position.| Samsung Electronics vs. MyHealthChecked Plc | Samsung Electronics vs. HCA Healthcare | Samsung Electronics vs. Worldwide Healthcare Trust | Samsung Electronics vs. Norwegian Air Shuttle |
| Primorus Investments vs. Catalyst Media Group | Primorus Investments vs. CATLIN GROUP | Primorus Investments vs. Tamburi Investment Partners | Primorus Investments 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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