Correlation Between Samsung Electronics and Kimberly Clark
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By analyzing existing cross correlation between Samsung Electronics Co and Kimberly Clark de Mxico, you can compare the effects of market volatilities on Samsung Electronics and Kimberly Clark 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 Kimberly Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Kimberly Clark.
Diversification Opportunities for Samsung Electronics and Kimberly Clark
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and Kimberly is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Kimberly Clark de Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimberly Clark de 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 Kimberly Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimberly Clark de has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Kimberly Clark go up and down completely randomly.
Pair Corralation between Samsung Electronics and Kimberly Clark
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.37 times more return on investment than Kimberly Clark. However, Samsung Electronics is 1.37 times more volatile than Kimberly Clark de Mxico. It trades about 0.0 of its potential returns per unit of risk. Kimberly Clark de Mxico is currently generating about -0.01 per unit of risk. If you would invest 2,136,111 in Samsung Electronics Co on September 14, 2024 and sell it today you would lose (190,361) from holding Samsung Electronics Co or give up 8.91% 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. Kimberly Clark de Mxico
Performance |
| Timeline |
| Samsung Electronics |
| Kimberly Clark de |
Samsung Electronics and Kimberly Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Kimberly Clark
The main advantage of trading using opposite Samsung Electronics and Kimberly Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Kimberly Clark 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 Kimberly Clark will offset losses from the drop in Kimberly Clark's long position.The idea behind Samsung Electronics Co and Kimberly Clark de Mxico pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Kimberly Clark vs. Samsung Electronics Co | Kimberly Clark vs. Avis Budget Group | Kimberly Clark vs. BlackRock | Kimberly Clark vs. Chipotle Mexican Grill |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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