Correlation Between Samsung Electronics and Gruppo MutuiOnline
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Gruppo MutuiOnline 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 Gruppo MutuiOnline 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 Gruppo MutuiOnline SpA, you can compare the effects of market volatilities on Samsung Electronics and Gruppo MutuiOnline 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 Gruppo MutuiOnline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Gruppo MutuiOnline.
Diversification Opportunities for Samsung Electronics and Gruppo MutuiOnline
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samsung and Gruppo is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Gruppo MutuiOnline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo MutuiOnline SpA 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 Gruppo MutuiOnline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo MutuiOnline SpA has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Gruppo MutuiOnline go up and down completely randomly.
Pair Corralation between Samsung Electronics and Gruppo MutuiOnline
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.6 times more return on investment than Gruppo MutuiOnline. However, Samsung Electronics is 1.6 times more volatile than Gruppo MutuiOnline SpA. It trades about 0.11 of its potential returns per unit of risk. Gruppo MutuiOnline SpA is currently generating about -0.52 per unit of risk. If you would invest 88,350 in Samsung Electronics Co on December 4, 2024 and sell it today you would earn a total of 3,950 from holding Samsung Electronics Co or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 54.55% |
| Values | Daily Returns |
Samsung Electronics Co vs. Gruppo MutuiOnline SpA
Performance |
| Timeline |
| Samsung Electronics |
| Gruppo MutuiOnline SpA |
Samsung Electronics and Gruppo MutuiOnline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Gruppo MutuiOnline
The main advantage of trading using opposite Samsung Electronics and Gruppo MutuiOnline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Gruppo MutuiOnline 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 Gruppo MutuiOnline will offset losses from the drop in Gruppo MutuiOnline's long position.| Samsung Electronics vs. Lindsell Train Investment | Samsung Electronics vs. Jade Road Investments | Samsung Electronics vs. Lloyds Banking Group | Samsung Electronics vs. BlackRock Frontiers Investment |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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