Correlation Between Samsung Electronics and Liberty Media
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Liberty Media 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 Liberty Media 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 Liberty Media Corp, you can compare the effects of market volatilities on Samsung Electronics and Liberty Media 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 Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Liberty Media.
Diversification Opportunities for Samsung Electronics and Liberty Media
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Liberty is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Liberty Media Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media Corp 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 Liberty Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Media Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Liberty Media go up and down completely randomly.
Pair Corralation between Samsung Electronics and Liberty Media
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Liberty Media. In addition to that, Samsung Electronics is 1.69 times more volatile than Liberty Media Corp. It trades about -0.02 of its total potential returns per unit of risk. Liberty Media Corp is currently generating about 0.18 per unit of volatility. If you would invest 7,454 in Liberty Media Corp on August 29, 2024 and sell it today you would earn a total of 588.00 from holding Liberty Media Corp or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Liberty Media Corp
Performance |
| Timeline |
| Samsung Electronics |
| Liberty Media Corp |
Samsung Electronics and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Liberty Media
The main advantage of trading using opposite Samsung Electronics and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Liberty Media 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 Liberty Media will offset losses from the drop in Liberty Media's long position.| Samsung Electronics vs. Lundin Mining Corp | Samsung Electronics vs. Metals Exploration Plc | Samsung Electronics vs. Check Point Software | Samsung Electronics vs. GreenX Metals |
| Liberty Media vs. Lendinvest PLC | Liberty Media vs. Neometals | Liberty Media vs. Coor Service Management | Liberty Media vs. Albion Technology General |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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