Correlation Between Samsung Electronics and La Comer
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By analyzing existing cross correlation between Samsung Electronics Co and La Comer SAB, you can compare the effects of market volatilities on Samsung Electronics and La Comer 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 La Comer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and La Comer.
Diversification Opportunities for Samsung Electronics and La Comer
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and LACOMERUBC is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and La Comer SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Comer 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 La Comer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Comer SAB has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and La Comer go up and down completely randomly.
Pair Corralation between Samsung Electronics and La Comer
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.11 times more return on investment than La Comer. However, Samsung Electronics is 1.11 times more volatile than La Comer SAB. It trades about 0.0 of its potential returns per unit of risk. La Comer SAB is currently generating about 0.0 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. La Comer SAB
Performance |
| Timeline |
| Samsung Electronics |
| La Comer SAB |
Samsung Electronics and La Comer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and La Comer
The main advantage of trading using opposite Samsung Electronics and La Comer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, La Comer 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 La Comer will offset losses from the drop in La Comer's long position.The idea behind Samsung Electronics Co and La Comer SAB 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.
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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