Correlation Between Samsung Electronics and Octopus Apollo
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Octopus Apollo 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 Octopus Apollo 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 Octopus Apollo VCT, you can compare the effects of market volatilities on Samsung Electronics and Octopus Apollo 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 Octopus Apollo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Octopus Apollo.
Diversification Opportunities for Samsung Electronics and Octopus Apollo
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Octopus is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Octopus Apollo VCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Octopus Apollo VCT 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 Octopus Apollo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Octopus Apollo VCT has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Octopus Apollo go up and down completely randomly.
Pair Corralation between Samsung Electronics and Octopus Apollo
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Octopus Apollo. In addition to that, Samsung Electronics is 2.73 times more volatile than Octopus Apollo VCT. It trades about -0.07 of its total potential returns per unit of risk. Octopus Apollo VCT is currently generating about -0.01 per unit of volatility. If you would invest 4,578 in Octopus Apollo VCT on November 28, 2024 and sell it today you would lose (68.00) from holding Octopus Apollo VCT or give up 1.49% 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. Octopus Apollo VCT
Performance |
| Timeline |
| Samsung Electronics |
| Octopus Apollo VCT |
Samsung Electronics and Octopus Apollo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Octopus Apollo
The main advantage of trading using opposite Samsung Electronics and Octopus Apollo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Octopus Apollo 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 Octopus Apollo will offset losses from the drop in Octopus Apollo's long position.| Samsung Electronics vs. Metals Exploration Plc | Samsung Electronics vs. Central Asia Metals | Samsung Electronics vs. Young Cos Brewery | Samsung Electronics vs. Wheaton Precious Metals |
| Octopus Apollo vs. URU Metals | Octopus Apollo vs. Eastman Chemical Co | Octopus Apollo vs. Naturhouse Health SA | Octopus Apollo vs. Fulcrum Metals PLC |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |