Correlation Between Samsung Electronics and ImmuPharma PLC
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and ImmuPharma PLC 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 ImmuPharma PLC 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 ImmuPharma PLC, you can compare the effects of market volatilities on Samsung Electronics and ImmuPharma PLC 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 ImmuPharma PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and ImmuPharma PLC.
Diversification Opportunities for Samsung Electronics and ImmuPharma PLC
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and ImmuPharma is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and ImmuPharma PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmuPharma 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 ImmuPharma PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmuPharma PLC has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and ImmuPharma PLC go up and down completely randomly.
Pair Corralation between Samsung Electronics and ImmuPharma PLC
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the ImmuPharma PLC. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.25 times less risky than ImmuPharma PLC. The stock trades about -0.21 of its potential returns per unit of risk. The ImmuPharma PLC is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 145.00 in ImmuPharma PLC on August 31, 2024 and sell it today you would lose (2.00) from holding ImmuPharma PLC or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. ImmuPharma PLC
Performance |
| Timeline |
| Samsung Electronics |
| ImmuPharma PLC |
Samsung Electronics and ImmuPharma PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and ImmuPharma PLC
The main advantage of trading using opposite Samsung Electronics and ImmuPharma PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, ImmuPharma PLC 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 ImmuPharma PLC will offset losses from the drop in ImmuPharma PLC's long position.| Samsung Electronics vs. The Investment | Samsung Electronics vs. Kinnevik Investment AB | Samsung Electronics vs. The Mercantile Investment | Samsung Electronics vs. Smithson Investment Trust |
| ImmuPharma PLC vs. Austevoll Seafood ASA | ImmuPharma PLC vs. Aurora Investment Trust | ImmuPharma PLC vs. New Residential Investment | ImmuPharma PLC vs. Sligro Food Group |
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.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |