Correlation Between Samsung Electronics and Atrium Mortgage
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Atrium Mortgage 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 Atrium Mortgage 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 Atrium Mortgage Investment, you can compare the effects of market volatilities on Samsung Electronics and Atrium Mortgage 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 Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Atrium Mortgage.
Diversification Opportunities for Samsung Electronics and Atrium Mortgage
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Atrium is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Atrium Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Mortgage Inve 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 Atrium Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Mortgage Inve has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Atrium Mortgage go up and down completely randomly.
Pair Corralation between Samsung Electronics and Atrium Mortgage
Assuming the 90 days horizon Samsung Electronics is expected to generate 19.52 times less return on investment than Atrium Mortgage. But when comparing it to its historical volatility, Samsung Electronics Co is 73.96 times less risky than Atrium Mortgage. It trades about 0.1 of its potential returns per unit of risk. Atrium Mortgage Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 780.00 in Atrium Mortgage Investment on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Atrium Mortgage Investment or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 62.22% |
| Values | Daily Returns |
Samsung Electronics Co vs. Atrium Mortgage Investment
Performance |
| Timeline |
| Samsung Electronics |
| Atrium Mortgage Inve |
Samsung Electronics and Atrium Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Atrium Mortgage
The main advantage of trading using opposite Samsung Electronics and Atrium Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Atrium Mortgage 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 Atrium Mortgage will offset losses from the drop in Atrium Mortgage's long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Amazon Inc | Samsung Electronics vs. Alphabet Inc Class C |
| Atrium Mortgage vs. JD Sports Fashion | Atrium Mortgage vs. Patterson UTI Energy | Atrium Mortgage vs. Academy Sports Outdoors | Atrium Mortgage vs. Funko Inc |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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