Correlation Between Samsung Electronics and Taylor Maritime
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Taylor Maritime 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 Taylor Maritime 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 Taylor Maritime Investments, you can compare the effects of market volatilities on Samsung Electronics and Taylor Maritime 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 Taylor Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Taylor Maritime.
Diversification Opportunities for Samsung Electronics and Taylor Maritime
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samsung and Taylor is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Taylor Maritime Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taylor Maritime Inve 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 Taylor Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taylor Maritime Inve has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Taylor Maritime go up and down completely randomly.
Pair Corralation between Samsung Electronics and Taylor Maritime
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Taylor Maritime. In addition to that, Samsung Electronics is 2.35 times more volatile than Taylor Maritime Investments. It trades about -0.05 of its total potential returns per unit of risk. Taylor Maritime Investments is currently generating about -0.09 per unit of volatility. If you would invest 7,698 in Taylor Maritime Investments on August 29, 2024 and sell it today you would lose (238.00) from holding Taylor Maritime Investments or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Taylor Maritime Investments
Performance |
| Timeline |
| Samsung Electronics |
| Taylor Maritime Inve |
Samsung Electronics and Taylor Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Taylor Maritime
The main advantage of trading using opposite Samsung Electronics and Taylor Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Taylor Maritime 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 Taylor Maritime will offset losses from the drop in Taylor Maritime's long position.| Samsung Electronics vs. Lundin Mining Corp | Samsung Electronics vs. Metals Exploration Plc | Samsung Electronics vs. Check Point Software | Samsung Electronics vs. GreenX Metals |
| Taylor Maritime vs. Lendinvest PLC | Taylor Maritime vs. Neometals | Taylor Maritime vs. Albion Technology General | Taylor Maritime vs. Jupiter Fund Management |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |