Correlation Between Samsung Electronics and News Corp
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and News Corp 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 News Corp 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 News Corp Cl, you can compare the effects of market volatilities on Samsung Electronics and News Corp 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 News Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and News Corp.
Diversification Opportunities for Samsung Electronics and News Corp
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and News is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and News Corp Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News Corp 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 News Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News Corp Cl has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and News Corp go up and down completely randomly.
Pair Corralation between Samsung Electronics and News Corp
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the News Corp. In addition to that, Samsung Electronics is 2.32 times more volatile than News Corp Cl. It trades about -0.02 of its total potential returns per unit of risk. News Corp Cl is currently generating about 0.32 per unit of volatility. If you would invest 2,654 in News Corp Cl on August 29, 2024 and sell it today you would earn a total of 274.00 from holding News Corp Cl or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. News Corp Cl
Performance |
| Timeline |
| Samsung Electronics |
| News Corp Cl |
Samsung Electronics and News Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and News Corp
The main advantage of trading using opposite Samsung Electronics and News Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, News Corp 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 News Corp will offset losses from the drop in News Corp'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 |
| News Corp vs. Royal Bank of | News Corp vs. T Mobile | News Corp vs. Aeorema Communications Plc | News Corp vs. UNIQA Insurance Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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