Correlation Between Samsung Electronics and Oncimmune Holdings
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Oncimmune Holdings 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 Oncimmune Holdings 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 Oncimmune Holdings plc, you can compare the effects of market volatilities on Samsung Electronics and Oncimmune Holdings 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 Oncimmune Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Oncimmune Holdings.
Diversification Opportunities for Samsung Electronics and Oncimmune Holdings
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samsung and Oncimmune is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Oncimmune Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oncimmune Holdings 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 Oncimmune Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oncimmune Holdings plc has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Oncimmune Holdings go up and down completely randomly.
Pair Corralation between Samsung Electronics and Oncimmune Holdings
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.48 times more return on investment than Oncimmune Holdings. However, Samsung Electronics Co is 2.06 times less risky than Oncimmune Holdings. It trades about 0.05 of its potential returns per unit of risk. Oncimmune Holdings plc is currently generating about -0.21 per unit of risk. If you would invest 92,200 in Samsung Electronics Co on October 23, 2024 and sell it today you would earn a total of 1,450 from holding Samsung Electronics Co or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Oncimmune Holdings plc
Performance |
| Timeline |
| Samsung Electronics |
| Oncimmune Holdings plc |
Samsung Electronics and Oncimmune Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Oncimmune Holdings
The main advantage of trading using opposite Samsung Electronics and Oncimmune Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Oncimmune Holdings 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 Oncimmune Holdings will offset losses from the drop in Oncimmune Holdings' long position.| Samsung Electronics vs. Spotify Technology SA | Samsung Electronics vs. Sealed Air Corp | Samsung Electronics vs. Air Products Chemicals | Samsung Electronics vs. Amedeo Air Four |
| Oncimmune Holdings vs. Berkshire Hathaway | Oncimmune Holdings vs. Samsung Electronics Co | Oncimmune Holdings vs. Samsung Electronics Co | Oncimmune Holdings vs. OTP Bank Nyrt |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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