Correlation Between Samsung Electronics and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Jupiter Fund 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 Jupiter Fund 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 Jupiter Fund Management, you can compare the effects of market volatilities on Samsung Electronics and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Jupiter Fund.
Diversification Opportunities for Samsung Electronics and Jupiter Fund
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Jupiter is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Jupiter Fund go up and down completely randomly.
Pair Corralation between Samsung Electronics and Jupiter Fund
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.78 times more return on investment than Jupiter Fund. However, Samsung Electronics Co is 1.27 times less risky than Jupiter Fund. It trades about 0.0 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.02 per unit of risk. If you would invest 104,579 in Samsung Electronics Co on September 24, 2024 and sell it today you would lose (12,729) from holding Samsung Electronics Co or give up 12.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Jupiter Fund Management
Performance |
| Timeline |
| Samsung Electronics |
| Jupiter Fund Management |
Samsung Electronics and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Jupiter Fund
The main advantage of trading using opposite Samsung Electronics and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Samsung Electronics vs. Air Products Chemicals | Samsung Electronics vs. Alliance Data Systems | Samsung Electronics vs. Erste Group Bank | Samsung Electronics vs. UNIQA Insurance Group |
| Jupiter Fund vs. Samsung Electronics Co | Jupiter Fund vs. Samsung Electronics Co | Jupiter Fund vs. Hyundai Motor | Jupiter Fund vs. Toyota Motor Corp |
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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