Correlation Between Samsung Electronics and Grupo Profuturo
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By analyzing existing cross correlation between Samsung Electronics Co and Grupo Profuturo SAB, you can compare the effects of market volatilities on Samsung Electronics and Grupo Profuturo 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 Grupo Profuturo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Grupo Profuturo.
Diversification Opportunities for Samsung Electronics and Grupo Profuturo
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Grupo is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Grupo Profuturo SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Profuturo SAB 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 Grupo Profuturo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Profuturo SAB has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Grupo Profuturo go up and down completely randomly.
Pair Corralation between Samsung Electronics and Grupo Profuturo
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Grupo Profuturo. In addition to that, Samsung Electronics is 1.86 times more volatile than Grupo Profuturo SAB. It trades about -0.01 of its total potential returns per unit of risk. Grupo Profuturo SAB is currently generating about 0.07 per unit of volatility. If you would invest 6,519 in Grupo Profuturo SAB on September 5, 2024 and sell it today you would earn a total of 2,781 from holding Grupo Profuturo SAB or generate 42.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Samsung Electronics Co vs. Grupo Profuturo SAB
Performance |
| Timeline |
| Samsung Electronics |
| Grupo Profuturo SAB |
Samsung Electronics and Grupo Profuturo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Grupo Profuturo
The main advantage of trading using opposite Samsung Electronics and Grupo Profuturo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Grupo Profuturo 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 Grupo Profuturo will offset losses from the drop in Grupo Profuturo's long position.| Samsung Electronics vs. Grupo Sports World | Samsung Electronics vs. Hoteles City Express | Samsung Electronics vs. Prudential Financial | Samsung Electronics vs. The Bank of |
| Grupo Profuturo vs. Samsung Electronics Co | Grupo Profuturo vs. Taiwan Semiconductor Manufacturing | Grupo Profuturo vs. JPMorgan Chase Co | Grupo Profuturo vs. Bank of America |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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