Correlation Between Samsung Electronics and Sabien Technology
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Sabien Technology 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 Sabien Technology 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 Sabien Technology Group, you can compare the effects of market volatilities on Samsung Electronics and Sabien Technology 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 Sabien Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Sabien Technology.
Diversification Opportunities for Samsung Electronics and Sabien Technology
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Sabien is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Sabien Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabien Technology 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 Sabien Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabien Technology has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Sabien Technology go up and down completely randomly.
Pair Corralation between Samsung Electronics and Sabien Technology
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Sabien Technology. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.53 times less risky than Sabien Technology. The stock trades about -0.05 of its potential returns per unit of risk. The Sabien Technology Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,150 in Sabien Technology Group on September 1, 2024 and sell it today you would earn a total of 25.00 from holding Sabien Technology Group or generate 2.17% 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. Sabien Technology Group
Performance |
| Timeline |
| Samsung Electronics |
| Sabien Technology |
Samsung Electronics and Sabien Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Sabien Technology
The main advantage of trading using opposite Samsung Electronics and Sabien Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Sabien Technology 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 Sabien Technology will offset losses from the drop in Sabien Technology'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 |
| Sabien Technology vs. Synchrony Financial | Sabien Technology vs. CleanTech Lithium plc | Sabien Technology vs. Virgin Wines UK | Sabien Technology vs. BW Offshore |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Correlations Find global opportunities by holding instruments from different markets |