Correlation Between Samsung Electronics and Fastly
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Fastly 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 Fastly 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 Fastly Inc Cl, you can compare the effects of market volatilities on Samsung Electronics and Fastly 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 Fastly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Fastly.
Diversification Opportunities for Samsung Electronics and Fastly
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Fastly is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Fastly Inc Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastly Inc Cl 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 Fastly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastly Inc Cl has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Fastly go up and down completely randomly.
Pair Corralation between Samsung Electronics and Fastly
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Fastly. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 2.64 times less risky than Fastly. The stock trades about 0.0 of its potential returns per unit of risk. The Fastly Inc Cl is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 760.00 in Fastly Inc Cl on September 14, 2024 and sell it today you would earn a total of 268.00 from holding Fastly Inc Cl or generate 35.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.81% |
| Values | Daily Returns |
Samsung Electronics Co vs. Fastly Inc Cl
Performance |
| Timeline |
| Samsung Electronics |
| Fastly Inc Cl |
Samsung Electronics and Fastly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Fastly
The main advantage of trading using opposite Samsung Electronics and Fastly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Fastly 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 Fastly will offset losses from the drop in Fastly's long position.| Samsung Electronics vs. European Metals Holdings | Samsung Electronics vs. Axfood AB | Samsung Electronics vs. McEwen Mining | Samsung Electronics vs. Roebuck Food Group |
| Fastly vs. Samsung Electronics Co | Fastly vs. Samsung Electronics Co | Fastly vs. Hyundai Motor | Fastly vs. Reliance Industries Ltd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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