Correlation Between SPARTAN STORES and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both SPARTAN STORES and Samsung Electronics 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 SPARTAN STORES and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPARTAN STORES and Samsung Electronics Co, you can compare the effects of market volatilities on SPARTAN STORES and Samsung Electronics 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 SPARTAN STORES with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPARTAN STORES and Samsung Electronics.
Diversification Opportunities for SPARTAN STORES and Samsung Electronics
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SPARTAN and Samsung is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding SPARTAN STORES and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and SPARTAN STORES 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 SPARTAN STORES are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of SPARTAN STORES i.e., SPARTAN STORES and Samsung Electronics go up and down completely randomly.
Pair Corralation between SPARTAN STORES and Samsung Electronics
Assuming the 90 days trading horizon SPARTAN STORES is expected to under-perform the Samsung Electronics. In addition to that, SPARTAN STORES is 1.32 times more volatile than Samsung Electronics Co. It trades about -0.12 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.06 per unit of volatility. If you would invest 80,400 in Samsung Electronics Co on August 26, 2024 and sell it today you would earn a total of 2,200 from holding Samsung Electronics Co or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPARTAN STORES vs. Samsung Electronics Co
Performance |
| Timeline |
| SPARTAN STORES |
| Samsung Electronics |
SPARTAN STORES and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPARTAN STORES and Samsung Electronics
The main advantage of trading using opposite SPARTAN STORES and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPARTAN STORES position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| SPARTAN STORES vs. NAKED WINES PLC | SPARTAN STORES vs. VIVA WINE GROUP | SPARTAN STORES vs. Japan Tobacco | SPARTAN STORES vs. CHINA TONTINE WINES |
| Samsung Electronics vs. National Storage Affiliates | Samsung Electronics vs. Geratherm Medical AG | Samsung Electronics vs. PUBLIC STORAGE PRFO | Samsung Electronics vs. Japan Medical Dynamic |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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