Correlation Between Samsung Electronics and Raymond James
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Raymond James 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 Raymond James 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 Raymond James Financial, you can compare the effects of market volatilities on Samsung Electronics and Raymond James 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 Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Raymond James.
Diversification Opportunities for Samsung Electronics and Raymond James
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Raymond is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Raymond James Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raymond James Financial 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 Raymond James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raymond James Financial has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Raymond James go up and down completely randomly.
Pair Corralation between Samsung Electronics and Raymond James
Assuming the 90 days trading horizon Samsung Electronics is expected to generate 3.47 times less return on investment than Raymond James. In addition to that, Samsung Electronics is 1.26 times more volatile than Raymond James Financial. It trades about 0.1 of its total potential returns per unit of risk. Raymond James Financial is currently generating about 0.44 per unit of volatility. If you would invest 15,426 in Raymond James Financial on October 29, 2024 and sell it today you would earn a total of 1,852 from holding Raymond James Financial or generate 12.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Raymond James Financial
Performance |
| Timeline |
| Samsung Electronics |
| Raymond James Financial |
Samsung Electronics and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Raymond James
The main advantage of trading using opposite Samsung Electronics and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Raymond James 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 Raymond James will offset losses from the drop in Raymond James' long position.| Samsung Electronics vs. Lundin Mining Corp | Samsung Electronics vs. Impax Asset Management | Samsung Electronics vs. URU Metals | Samsung Electronics vs. Wyndham Hotels Resorts |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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