Correlation Between Samsung Electronics and PureTech Health
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and PureTech Health 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 PureTech Health 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 PureTech Health plc, you can compare the effects of market volatilities on Samsung Electronics and PureTech Health 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 PureTech Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and PureTech Health.
Diversification Opportunities for Samsung Electronics and PureTech Health
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and PureTech is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and PureTech Health plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PureTech Health 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 PureTech Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PureTech Health plc has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and PureTech Health go up and down completely randomly.
Pair Corralation between Samsung Electronics and PureTech Health
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the PureTech Health. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.47 times less risky than PureTech Health. The stock trades about -0.04 of its potential returns per unit of risk. The PureTech Health plc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 16,160 in PureTech Health plc on September 1, 2024 and sell it today you would earn a total of 520.00 from holding PureTech Health plc or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. PureTech Health plc
Performance |
| Timeline |
| Samsung Electronics |
| PureTech Health plc |
Samsung Electronics and PureTech Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and PureTech Health
The main advantage of trading using opposite Samsung Electronics and PureTech Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, PureTech Health 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 PureTech Health will offset losses from the drop in PureTech Health's long position.| Samsung Electronics vs. Roebuck Food Group | Samsung Electronics vs. Molson Coors Beverage | Samsung Electronics vs. United Utilities Group | Samsung Electronics vs. Premier Foods PLC |
| PureTech Health vs. Home Depot | PureTech Health vs. Weiss Korea Opportunity | PureTech Health vs. River and Mercantile | PureTech Health vs. Sherborne Investors Guernsey |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |