Correlation Between Samsung Electronics and Dolly Varden
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Dolly Varden 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 Dolly Varden 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 Dolly Varden Silver, you can compare the effects of market volatilities on Samsung Electronics and Dolly Varden 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 Dolly Varden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Dolly Varden.
Diversification Opportunities for Samsung Electronics and Dolly Varden
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Dolly is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Dolly Varden Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolly Varden Silver 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 Dolly Varden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolly Varden Silver has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Dolly Varden go up and down completely randomly.
Pair Corralation between Samsung Electronics and Dolly Varden
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.81 times more return on investment than Dolly Varden. However, Samsung Electronics Co is 1.23 times less risky than Dolly Varden. It trades about -0.02 of its potential returns per unit of risk. Dolly Varden Silver is currently generating about -0.33 per unit of risk. If you would invest 104,300 in Samsung Electronics Co on August 28, 2024 and sell it today you would lose (2,500) from holding Samsung Electronics Co or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
Samsung Electronics Co vs. Dolly Varden Silver
Performance |
| Timeline |
| Samsung Electronics |
| Dolly Varden Silver |
Samsung Electronics and Dolly Varden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Dolly Varden
The main advantage of trading using opposite Samsung Electronics and Dolly Varden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Dolly Varden 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 Dolly Varden will offset losses from the drop in Dolly Varden'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 |
| Dolly Varden vs. Samsung Electronics Co | Dolly Varden vs. Samsung Electronics Co | Dolly Varden vs. Hyundai Motor | Dolly Varden vs. Toyota Motor Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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