Correlation Between Samsung Electronics and MOL Hungarian
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and MOL Hungarian 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 MOL Hungarian 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 MOL Hungarian Oil, you can compare the effects of market volatilities on Samsung Electronics and MOL Hungarian 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 MOL Hungarian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and MOL Hungarian.
Diversification Opportunities for Samsung Electronics and MOL Hungarian
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and MOL is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and MOL Hungarian Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOL Hungarian Oil 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 MOL Hungarian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOL Hungarian Oil has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and MOL Hungarian go up and down completely randomly.
Pair Corralation between Samsung Electronics and MOL Hungarian
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the MOL Hungarian. In addition to that, Samsung Electronics is 1.24 times more volatile than MOL Hungarian Oil. It trades about 0.0 of its total potential returns per unit of risk. MOL Hungarian Oil is currently generating about 0.02 per unit of volatility. If you would invest 262,193 in MOL Hungarian Oil on August 28, 2024 and sell it today you would earn a total of 30,007 from holding MOL Hungarian Oil or generate 11.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.11% |
| Values | Daily Returns |
Samsung Electronics Co vs. MOL Hungarian Oil
Performance |
| Timeline |
| Samsung Electronics |
| MOL Hungarian Oil |
Samsung Electronics and MOL Hungarian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and MOL Hungarian
The main advantage of trading using opposite Samsung Electronics and MOL Hungarian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, MOL Hungarian 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 MOL Hungarian will offset losses from the drop in MOL Hungarian's long position.| Samsung Electronics vs. Cornish Metals | Samsung Electronics vs. Gaztransport et Technigaz | Samsung Electronics vs. Blackstone Loan Financing | Samsung Electronics vs. CAP LEASE AVIATION |
| MOL Hungarian vs. Samsung Electronics Co | MOL Hungarian vs. Automatic Data Processing | MOL Hungarian vs. Creo Medical Group | MOL Hungarian vs. Datalogic |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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