Correlation Between Samsung Electronics and Dunedin Enterprise
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Dunedin Enterprise 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 Dunedin Enterprise 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 Dunedin Enterprise Investment, you can compare the effects of market volatilities on Samsung Electronics and Dunedin Enterprise 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 Dunedin Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Dunedin Enterprise.
Diversification Opportunities for Samsung Electronics and Dunedin Enterprise
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Samsung and Dunedin is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Dunedin Enterprise Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunedin Enterprise 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 Dunedin Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunedin Enterprise has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Dunedin Enterprise go up and down completely randomly.
Pair Corralation between Samsung Electronics and Dunedin Enterprise
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Dunedin Enterprise. In addition to that, Samsung Electronics is 3.16 times more volatile than Dunedin Enterprise Investment. It trades about -0.1 of its total potential returns per unit of risk. Dunedin Enterprise Investment is currently generating about 0.0 per unit of volatility. If you would invest 49,750 in Dunedin Enterprise Investment on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Dunedin Enterprise Investment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Dunedin Enterprise Investment
Performance |
| Timeline |
| Samsung Electronics |
| Dunedin Enterprise |
Samsung Electronics and Dunedin Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Dunedin Enterprise
The main advantage of trading using opposite Samsung Electronics and Dunedin Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Dunedin Enterprise 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 Dunedin Enterprise will offset losses from the drop in Dunedin Enterprise'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 |
| Dunedin Enterprise vs. Toyota Motor Corp | Dunedin Enterprise vs. SoftBank Group Corp | Dunedin Enterprise vs. OTP Bank Nyrt | Dunedin Enterprise vs. Las Vegas Sands |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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