Correlation Between Samsung Electronics and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Catalyst Media 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 Catalyst Media 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 Catalyst Media Group, you can compare the effects of market volatilities on Samsung Electronics and Catalyst Media 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 Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Catalyst Media.
Diversification Opportunities for Samsung Electronics and Catalyst Media
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Catalyst is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media Group 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 Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Catalyst Media go up and down completely randomly.
Pair Corralation between Samsung Electronics and Catalyst Media
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.69 times more return on investment than Catalyst Media. However, Samsung Electronics Co is 1.46 times less risky than Catalyst Media. It trades about 0.07 of its potential returns per unit of risk. Catalyst Media Group is currently generating about -0.27 per unit of risk. If you would invest 90,650 in Samsung Electronics Co on December 1, 2024 and sell it today you would earn a total of 2,600 from holding Samsung Electronics Co or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Catalyst Media Group
Performance |
| Timeline |
| Samsung Electronics |
| Catalyst Media Group |
Samsung Electronics and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Catalyst Media
The main advantage of trading using opposite Samsung Electronics and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Catalyst Media 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 Catalyst Media will offset losses from the drop in Catalyst Media's long position.| Samsung Electronics vs. Zoom Video Communications | Samsung Electronics vs. Verizon Communications | Samsung Electronics vs. Fair Oaks Income | Samsung Electronics vs. Virgin Wines UK |
| Catalyst Media vs. Ryanair Holdings plc | Catalyst Media vs. Flow Traders NV | Catalyst Media vs. Scandinavian Tobacco Group | Catalyst Media vs. Pentair PLC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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