Correlation Between Samsung Electronics and Trainline Plc
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Trainline Plc 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 Trainline Plc 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 Trainline Plc, you can compare the effects of market volatilities on Samsung Electronics and Trainline Plc 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 Trainline Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Trainline Plc.
Diversification Opportunities for Samsung Electronics and Trainline Plc
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Trainline is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Trainline Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trainline 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 Trainline Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trainline Plc has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Trainline Plc go up and down completely randomly.
Pair Corralation between Samsung Electronics and Trainline Plc
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Trainline Plc. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.37 times less risky than Trainline Plc. The stock trades about -0.01 of its potential returns per unit of risk. The Trainline Plc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 26,600 in Trainline Plc on September 12, 2024 and sell it today you would earn a total of 15,540 from holding Trainline Plc or generate 58.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Trainline Plc
Performance |
| Timeline |
| Samsung Electronics |
| Trainline Plc |
Samsung Electronics and Trainline Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Trainline Plc
The main advantage of trading using opposite Samsung Electronics and Trainline Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Trainline Plc 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 Trainline Plc will offset losses from the drop in Trainline Plc's long position.| Samsung Electronics vs. McEwen Mining | Samsung Electronics vs. United Utilities Group | Samsung Electronics vs. Coor Service Management | Samsung Electronics vs. Jupiter Fund Management |
| Trainline Plc vs. National Atomic Co | Trainline Plc vs. OTP Bank Nyrt | Trainline Plc vs. Samsung Electronics Co | Trainline Plc vs. Samsung Electronics Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |