Correlation Between Samsung Electronics and Hilton Food
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Hilton Food 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 Hilton Food 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 Hilton Food Group, you can compare the effects of market volatilities on Samsung Electronics and Hilton Food 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 Hilton Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Hilton Food.
Diversification Opportunities for Samsung Electronics and Hilton Food
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Hilton is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Hilton Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Food 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 Hilton Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Food Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Hilton Food go up and down completely randomly.
Pair Corralation between Samsung Electronics and Hilton Food
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Hilton Food. In addition to that, Samsung Electronics is 1.36 times more volatile than Hilton Food Group. It trades about -0.05 of its total potential returns per unit of risk. Hilton Food Group is currently generating about 0.1 per unit of volatility. If you would invest 62,295 in Hilton Food Group on September 1, 2024 and sell it today you would earn a total of 28,305 from holding Hilton Food Group or generate 45.44% 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. Hilton Food Group
Performance |
| Timeline |
| Samsung Electronics |
| Hilton Food Group |
Samsung Electronics and Hilton Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Hilton Food
The main advantage of trading using opposite Samsung Electronics and Hilton Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Hilton Food 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 Hilton Food will offset losses from the drop in Hilton Food's long position.| Samsung Electronics vs. Ecclesiastical Insurance Office | Samsung Electronics vs. FC Investment Trust | Samsung Electronics vs. New Residential Investment | Samsung Electronics vs. DFS Furniture PLC |
| Hilton Food vs. Intermediate Capital Group | Hilton Food vs. Grand Vision Media | Hilton Food vs. BE Semiconductor Industries | Hilton Food vs. JD Sports Fashion |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |