Correlation Between Samsung Electronics and Atomera
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Atomera 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 Atomera 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 Atomera, you can compare the effects of market volatilities on Samsung Electronics and Atomera 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 Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Atomera.
Diversification Opportunities for Samsung Electronics and Atomera
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Atomera is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Atomera go up and down completely randomly.
Pair Corralation between Samsung Electronics and Atomera
Assuming the 90 days horizon Samsung Electronics is expected to generate 9.99 times less return on investment than Atomera. But when comparing it to its historical volatility, Samsung Electronics Co is 75.25 times less risky than Atomera. It trades about 0.1 of its potential returns per unit of risk. Atomera is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 776.00 in Atomera on August 24, 2024 and sell it today you would lose (196.00) from holding Atomera or give up 25.26% 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. Atomera
Performance |
| Timeline |
| Samsung Electronics |
| Atomera |
Samsung Electronics and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Atomera
The main advantage of trading using opposite Samsung Electronics and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.| Samsung Electronics vs. Copa Holdings SA | Samsung Electronics vs. United Airlines Holdings | Samsung Electronics vs. Delta Air Lines | Samsung Electronics vs. SkyWest |
| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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