Correlation Between Samsung Electronics and Chocoladefabriken
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Chocoladefabriken 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 Chocoladefabriken 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 Chocoladefabriken Lindt Spruengli, you can compare the effects of market volatilities on Samsung Electronics and Chocoladefabriken 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 Chocoladefabriken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Chocoladefabriken.
Diversification Opportunities for Samsung Electronics and Chocoladefabriken
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and Chocoladefabriken is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Chocoladefabriken Lindt Spruen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chocoladefabriken Lindt 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 Chocoladefabriken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chocoladefabriken Lindt has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Chocoladefabriken go up and down completely randomly.
Pair Corralation between Samsung Electronics and Chocoladefabriken
Assuming the 90 days trading horizon Samsung Electronics is expected to generate 6.13 times less return on investment than Chocoladefabriken. In addition to that, Samsung Electronics is 2.0 times more volatile than Chocoladefabriken Lindt Spruengli. It trades about 0.01 of its total potential returns per unit of risk. Chocoladefabriken Lindt Spruengli is currently generating about 0.18 per unit of volatility. If you would invest 10,000,000 in Chocoladefabriken Lindt Spruengli on November 2, 2024 and sell it today you would earn a total of 380,000 from holding Chocoladefabriken Lindt Spruengli or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Chocoladefabriken Lindt Spruen
Performance |
| Timeline |
| Samsung Electronics |
| Chocoladefabriken Lindt |
Samsung Electronics and Chocoladefabriken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Chocoladefabriken
The main advantage of trading using opposite Samsung Electronics and Chocoladefabriken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Chocoladefabriken 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 Chocoladefabriken will offset losses from the drop in Chocoladefabriken's long position.The idea behind Samsung Electronics Co and Chocoladefabriken Lindt Spruengli pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Chocoladefabriken vs. Chrysalis Investments | Chocoladefabriken vs. MoneysupermarketCom Group PLC | Chocoladefabriken vs. Tyson Foods Cl | Chocoladefabriken vs. Livermore Investments 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |