Correlation Between Samsung Electronics and Atresmedia
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Atresmedia 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 Atresmedia 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 Atresmedia, you can compare the effects of market volatilities on Samsung Electronics and Atresmedia 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 Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Atresmedia.
Diversification Opportunities for Samsung Electronics and Atresmedia
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Atresmedia is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia 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 Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Atresmedia go up and down completely randomly.
Pair Corralation between Samsung Electronics and Atresmedia
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Atresmedia. In addition to that, Samsung Electronics is 1.49 times more volatile than Atresmedia. It trades about -0.02 of its total potential returns per unit of risk. Atresmedia is currently generating about 0.08 per unit of volatility. If you would invest 287.00 in Atresmedia on November 5, 2024 and sell it today you would earn a total of 153.00 from holding Atresmedia or generate 53.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Atresmedia
Performance |
| Timeline |
| Samsung Electronics |
| Atresmedia |
Samsung Electronics and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Atresmedia
The main advantage of trading using opposite Samsung Electronics and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| Samsung Electronics vs. Metro Bank PLC | Samsung Electronics vs. Regions Financial Corp | Samsung Electronics vs. Zurich Insurance Group | Samsung Electronics vs. Raymond James Financial |
| Atresmedia vs. Vitec Software Group | Atresmedia vs. Vienna Insurance Group | Atresmedia vs. URU Metals | Atresmedia vs. AMG Advanced Metallurgical |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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