Correlation Between Samsung Electronics and Adobe
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Adobe 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 Adobe 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 Adobe Inc, you can compare the effects of market volatilities on Samsung Electronics and Adobe 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 Adobe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Adobe.
Diversification Opportunities for Samsung Electronics and Adobe
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and Adobe is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Adobe Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adobe Inc 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 Adobe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adobe Inc has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Adobe go up and down completely randomly.
Pair Corralation between Samsung Electronics and Adobe
If you would invest 1,950,000 in Samsung Electronics Co on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Samsung Electronics Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Adobe Inc
Performance |
| Timeline |
| Samsung Electronics |
| Adobe Inc |
Samsung Electronics and Adobe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Adobe
The main advantage of trading using opposite Samsung Electronics and Adobe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Adobe 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 Adobe will offset losses from the drop in Adobe's long position.| Samsung Electronics vs. DXC Technology | Samsung Electronics vs. GMxico Transportes SAB | Samsung Electronics vs. Costco Wholesale | Samsung Electronics vs. Monster Beverage Corp |
| Adobe vs. Verizon Communications | Adobe vs. McEwen Mining | Adobe vs. Grupo Sports World | Adobe vs. CVS Health |
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.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |