Correlation Between Samsung Electronics and Air Transport
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Air Transport 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 Air Transport 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 Air Transport Services, you can compare the effects of market volatilities on Samsung Electronics and Air Transport 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 Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Air Transport.
Diversification Opportunities for Samsung Electronics and Air Transport
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Air is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services 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 Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Air Transport go up and down completely randomly.
Pair Corralation between Samsung Electronics and Air Transport
If you would invest 1,867,180 in Samsung Electronics Co on November 28, 2024 and sell it today you would earn a total of 215,820 from holding Samsung Electronics Co or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Air Transport Services
Performance |
| Timeline |
| Samsung Electronics |
| Air Transport Services |
Samsung Electronics and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Air Transport
The main advantage of trading using opposite Samsung Electronics and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| Samsung Electronics vs. Prudential Financial | Samsung Electronics vs. Salesforce, | Samsung Electronics vs. Cognizant Technology Solutions | Samsung Electronics vs. Delta Air Lines |
| Air Transport vs. McEwen Mining | Air Transport vs. Grupo Sports World | Air Transport vs. Verizon Communications | Air Transport vs. Hoteles City Express |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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