Correlation Between Samsung Electronics and Monex SAB
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Monex SAB 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 Monex SAB 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 Monex SAB de, you can compare the effects of market volatilities on Samsung Electronics and Monex SAB 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 Monex SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Monex SAB.
Diversification Opportunities for Samsung Electronics and Monex SAB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Monex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Monex SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monex SAB 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 Monex SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monex SAB de has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Monex SAB go up and down completely randomly.
Pair Corralation between Samsung Electronics and Monex SAB
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 8.62 times more return on investment than Monex SAB. However, Samsung Electronics is 8.62 times more volatile than Monex SAB de. It trades about 0.0 of its potential returns per unit of risk. Monex SAB de is currently generating about -0.01 per unit of risk. If you would invest 2,136,111 in Samsung Electronics Co on September 12, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Monex SAB de
Performance |
| Timeline |
| Samsung Electronics |
| Monex SAB de |
Samsung Electronics and Monex SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Monex SAB
The main advantage of trading using opposite Samsung Electronics and Monex SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Monex SAB 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 Monex SAB will offset losses from the drop in Monex SAB's long position.| Samsung Electronics vs. Hoteles City Express | Samsung Electronics vs. United States Steel | Samsung Electronics vs. Grupo Sports World | Samsung Electronics vs. Monster Beverage Corp |
| Monex SAB vs. Samsung Electronics Co | Monex SAB vs. Sony Group | Monex SAB vs. Taiwan Semiconductor Manufacturing | Monex SAB vs. Alibaba Group Holding |
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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