Correlation Between Samsung Electronics and Roebuck Food
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Roebuck 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 Roebuck 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 Roebuck Food Group, you can compare the effects of market volatilities on Samsung Electronics and Roebuck 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 Roebuck Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Roebuck Food.
Diversification Opportunities for Samsung Electronics and Roebuck Food
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Roebuck is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Roebuck Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roebuck 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 Roebuck Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roebuck Food Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Roebuck Food go up and down completely randomly.
Pair Corralation between Samsung Electronics and Roebuck Food
If you would invest 93,650 in Samsung Electronics Co on September 13, 2024 and sell it today you would earn a total of 1,250 from holding Samsung Electronics Co or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Roebuck Food Group
Performance |
| Timeline |
| Samsung Electronics |
| Roebuck Food Group |
Samsung Electronics and Roebuck Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Roebuck Food
The main advantage of trading using opposite Samsung Electronics and Roebuck Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Roebuck 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 Roebuck Food will offset losses from the drop in Roebuck Food's long position.| Samsung Electronics vs. Fidelity National Information | Samsung Electronics vs. Edita Food Industries | Samsung Electronics vs. Axfood AB | Samsung Electronics vs. Air Products Chemicals |
| Roebuck Food vs. Berkshire Hathaway | Roebuck Food vs. Chocoladefabriken Lindt Spruengli | Roebuck Food vs. Toyota Motor Corp | Roebuck Food vs. Johnson Matthey 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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