Correlation Between Samsung Electronics and Anglo Eastern
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Anglo Eastern 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 Anglo Eastern 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 Anglo Eastern Plantations PLC, you can compare the effects of market volatilities on Samsung Electronics and Anglo Eastern 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 Anglo Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Anglo Eastern.
Diversification Opportunities for Samsung Electronics and Anglo Eastern
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Anglo is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Anglo Eastern Plantations PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Eastern Planta 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 Anglo Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Eastern Planta has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Anglo Eastern go up and down completely randomly.
Pair Corralation between Samsung Electronics and Anglo Eastern
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Anglo Eastern. In addition to that, Samsung Electronics is 1.85 times more volatile than Anglo Eastern Plantations PLC. It trades about -0.02 of its total potential returns per unit of risk. Anglo Eastern Plantations PLC is currently generating about 0.11 per unit of volatility. If you would invest 65,800 in Anglo Eastern Plantations PLC on August 26, 2024 and sell it today you would earn a total of 2,600 from holding Anglo Eastern Plantations PLC or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Anglo Eastern Plantations PLC
Performance |
| Timeline |
| Samsung Electronics |
| Anglo Eastern Planta |
Samsung Electronics and Anglo Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Anglo Eastern
The main advantage of trading using opposite Samsung Electronics and Anglo Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Anglo Eastern 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 Anglo Eastern will offset losses from the drop in Anglo Eastern's long position.| Samsung Electronics vs. Taylor Maritime Investments | Samsung Electronics vs. Monks Investment Trust | Samsung Electronics vs. Schroders Investment Trusts | Samsung Electronics vs. Aurora Investment Trust |
| Anglo Eastern vs. GoldMining | Anglo Eastern vs. Universal Display Corp | Anglo Eastern vs. Greenroc Mining PLC | Anglo Eastern vs. CNH Industrial NV |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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