Correlation Between Samsung Electronics and Zinc Media
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Zinc Media 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 Zinc Media 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 Zinc Media Group, you can compare the effects of market volatilities on Samsung Electronics and Zinc Media 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 Zinc Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Zinc Media.
Diversification Opportunities for Samsung Electronics and Zinc Media
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and Zinc is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Zinc Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc Media 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 Zinc Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc Media Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Zinc Media go up and down completely randomly.
Pair Corralation between Samsung Electronics and Zinc Media
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.04 times more return on investment than Zinc Media. However, Samsung Electronics is 1.04 times more volatile than Zinc Media Group. It trades about -0.08 of its potential returns per unit of risk. Zinc Media Group is currently generating about -0.28 per unit of risk. If you would invest 106,000 in Samsung Electronics Co on August 31, 2024 and sell it today you would lose (6,800) from holding Samsung Electronics Co or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Zinc Media Group
Performance |
| Timeline |
| Samsung Electronics |
| Zinc Media Group |
Samsung Electronics and Zinc Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Zinc Media
The main advantage of trading using opposite Samsung Electronics and Zinc Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Zinc Media 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 Zinc Media will offset losses from the drop in Zinc Media's long position.| Samsung Electronics vs. The Investment | Samsung Electronics vs. Kinnevik Investment AB | Samsung Electronics vs. The Mercantile Investment | Samsung Electronics vs. Smithson Investment Trust |
| Zinc Media vs. Toyota Motor Corp | Zinc Media vs. SoftBank Group Corp | Zinc Media vs. OTP Bank Nyrt | Zinc Media vs. Las Vegas Sands |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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