Correlation Between Samsung Electronics and Bellevue Healthcare
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Bellevue Healthcare 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 Bellevue Healthcare 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 Bellevue Healthcare Trust, you can compare the effects of market volatilities on Samsung Electronics and Bellevue Healthcare 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 Bellevue Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Bellevue Healthcare.
Diversification Opportunities for Samsung Electronics and Bellevue Healthcare
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and Bellevue is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Bellevue Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bellevue Healthcare Trust 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 Bellevue Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bellevue Healthcare Trust has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Bellevue Healthcare go up and down completely randomly.
Pair Corralation between Samsung Electronics and Bellevue Healthcare
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Bellevue Healthcare. In addition to that, Samsung Electronics is 2.51 times more volatile than Bellevue Healthcare Trust. It trades about -0.21 of its total potential returns per unit of risk. Bellevue Healthcare Trust is currently generating about -0.16 per unit of volatility. If you would invest 15,660 in Bellevue Healthcare Trust on September 2, 2024 and sell it today you would lose (1,540) from holding Bellevue Healthcare Trust or give up 9.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Bellevue Healthcare Trust
Performance |
| Timeline |
| Samsung Electronics |
| Bellevue Healthcare Trust |
Samsung Electronics and Bellevue Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Bellevue Healthcare
The main advantage of trading using opposite Samsung Electronics and Bellevue Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Bellevue Healthcare 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 Bellevue Healthcare will offset losses from the drop in Bellevue Healthcare's long position.| Samsung Electronics vs. Cizzle Biotechnology Holdings | Samsung Electronics vs. International Biotechnology Trust | Samsung Electronics vs. TechnipFMC PLC | Samsung Electronics vs. Intuitive Investments Group |
| Bellevue Healthcare vs. Virgin Wines UK | Bellevue Healthcare vs. Roebuck Food Group | Bellevue Healthcare vs. Leroy Seafood Group | Bellevue Healthcare vs. Flow Traders 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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