Correlation Between Samsung Electronics and Grand Vision
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Grand Vision 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 Grand Vision 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 Grand Vision Media, you can compare the effects of market volatilities on Samsung Electronics and Grand Vision 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 Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Grand Vision.
Diversification Opportunities for Samsung Electronics and Grand Vision
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Grand is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media 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 Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Grand Vision go up and down completely randomly.
Pair Corralation between Samsung Electronics and Grand Vision
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.7 times more return on investment than Grand Vision. However, Samsung Electronics Co is 1.42 times less risky than Grand Vision. It trades about -0.15 of its potential returns per unit of risk. Grand Vision Media is currently generating about -0.12 per unit of risk. If you would invest 121,559 in Samsung Electronics Co on September 12, 2024 and sell it today you would lose (26,659) from holding Samsung Electronics Co or give up 21.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Grand Vision Media
Performance |
| Timeline |
| Samsung Electronics |
| Grand Vision Media |
Samsung Electronics and Grand Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Grand Vision
The main advantage of trading using opposite Samsung Electronics and Grand Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Grand Vision 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 Grand Vision will offset losses from the drop in Grand Vision's long position.| Samsung Electronics vs. Fidelity National Information | Samsung Electronics vs. Edita Food Industries | Samsung Electronics vs. Axfood AB | Samsung Electronics vs. Air Products Chemicals |
| Grand Vision vs. Cincinnati Financial Corp | Grand Vision vs. Sparebank 1 SR | Grand Vision vs. Future Metals NL | Grand Vision vs. Europa Metals |
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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