Correlation Between Samsung Electronics and Grupo Lamosa
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Grupo Lamosa 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 Grupo Lamosa 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 Grupo Lamosa SAB, you can compare the effects of market volatilities on Samsung Electronics and Grupo Lamosa 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 Lamosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Grupo Lamosa.
Diversification Opportunities for Samsung Electronics and Grupo Lamosa
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Grupo is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Grupo Lamosa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Lamosa 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 Lamosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Lamosa SAB has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Grupo Lamosa go up and down completely randomly.
Pair Corralation between Samsung Electronics and Grupo Lamosa
If you would invest 1,945,750 in Samsung Electronics Co on October 10, 2024 and sell it today you would earn a total of 4,250 from holding Samsung Electronics Co or generate 0.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Samsung Electronics Co vs. Grupo Lamosa SAB
Performance |
Timeline |
Samsung Electronics |
Grupo Lamosa SAB |
Samsung Electronics and Grupo Lamosa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and Grupo Lamosa
The main advantage of trading using opposite Samsung Electronics and Grupo Lamosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Grupo Lamosa 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 Lamosa will offset losses from the drop in Grupo Lamosa's long position.Samsung Electronics vs. United Airlines Holdings | Samsung Electronics vs. United States Steel | Samsung Electronics vs. Verizon Communications | Samsung Electronics vs. Lloyds Banking Group |
Grupo Lamosa vs. Samsung Electronics Co | Grupo Lamosa vs. Micron Technology | Grupo Lamosa vs. The Home Depot | Grupo Lamosa vs. New Oriental Education |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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