Correlation Between Samsung Electronics and Codex Acquisitions
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Codex Acquisitions 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 Codex Acquisitions 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 Codex Acquisitions PLC, you can compare the effects of market volatilities on Samsung Electronics and Codex Acquisitions 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 Codex Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Codex Acquisitions.
Diversification Opportunities for Samsung Electronics and Codex Acquisitions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Codex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Codex Acquisitions PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codex Acquisitions PLC 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 Codex Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codex Acquisitions PLC has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Codex Acquisitions go up and down completely randomly.
Pair Corralation between Samsung Electronics and Codex Acquisitions
If you would invest 5.50 in Codex Acquisitions PLC on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Codex Acquisitions PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.81% |
| Values | Daily Returns |
Samsung Electronics Co vs. Codex Acquisitions PLC
Performance |
| Timeline |
| Samsung Electronics |
| Codex Acquisitions PLC |
Samsung Electronics and Codex Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Codex Acquisitions
The main advantage of trading using opposite Samsung Electronics and Codex Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Codex Acquisitions 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 Codex Acquisitions will offset losses from the drop in Codex Acquisitions' long position.| Samsung Electronics vs. Metals Exploration Plc | Samsung Electronics vs. Central Asia Metals | Samsung Electronics vs. Gruppo MutuiOnline SpA | Samsung Electronics vs. Young Cos Brewery |
| Codex Acquisitions vs. Cognizant Technology Solutions | Codex Acquisitions vs. Global Net Lease | Codex Acquisitions vs. Atalaya Mining | Codex Acquisitions vs. Southwest Airlines Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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