Correlation Between Samsung Electronics and Host Hotels
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Host Hotels 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 Host Hotels 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 Host Hotels Resorts, you can compare the effects of market volatilities on Samsung Electronics and Host Hotels 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 Host Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Host Hotels.
Diversification Opportunities for Samsung Electronics and Host Hotels
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Host is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Host Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Host Hotels Resorts 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 Host Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Host Hotels Resorts has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Host Hotels go up and down completely randomly.
Pair Corralation between Samsung Electronics and Host Hotels
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Host Hotels. In addition to that, Samsung Electronics is 1.52 times more volatile than Host Hotels Resorts. It trades about -0.1 of its total potential returns per unit of risk. Host Hotels Resorts is currently generating about 0.01 per unit of volatility. If you would invest 1,639 in Host Hotels Resorts on December 4, 2024 and sell it today you would lose (3.00) from holding Host Hotels Resorts or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Samsung Electronics Co vs. Host Hotels Resorts
Performance |
| Timeline |
| Samsung Electronics |
| Host Hotels Resorts |
Samsung Electronics and Host Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Host Hotels
The main advantage of trading using opposite Samsung Electronics and Host Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Host Hotels 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 Host Hotels will offset losses from the drop in Host Hotels' long position.| Samsung Electronics vs. Silvercorp Metals | Samsung Electronics vs. Direct Line Insurance | Samsung Electronics vs. Liechtensteinische Landesbank AG | Samsung Electronics vs. Critical Metals Plc |
| Host Hotels vs. Evolution Gaming Group | Host Hotels vs. Lowland Investment Co | Host Hotels vs. mobilezone holding AG | Host Hotels vs. Fonix Mobile plc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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