Correlation Between Samsung Electronics and Astronics Corp
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Astronics Corp 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 Astronics Corp 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 Astronics Corp Cl, you can compare the effects of market volatilities on Samsung Electronics and Astronics Corp 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 Astronics Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Astronics Corp.
Diversification Opportunities for Samsung Electronics and Astronics Corp
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Astronics is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Astronics Corp Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astronics Corp Cl 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 Astronics Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astronics Corp Cl has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Astronics Corp go up and down completely randomly.
Pair Corralation between Samsung Electronics and Astronics Corp
Assuming the 90 days horizon Samsung Electronics is expected to generate 10.31 times less return on investment than Astronics Corp. But when comparing it to its historical volatility, Samsung Electronics Co is 61.09 times less risky than Astronics Corp. It trades about 0.11 of its potential returns per unit of risk. Astronics Corp Cl is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,656 in Astronics Corp Cl on August 29, 2024 and sell it today you would lose (72.00) from holding Astronics Corp Cl or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Astronics Corp Cl
Performance |
| Timeline |
| Samsung Electronics |
| Astronics Corp Cl |
Samsung Electronics and Astronics Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Astronics Corp
The main advantage of trading using opposite Samsung Electronics and Astronics Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Astronics Corp 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 Astronics Corp will offset losses from the drop in Astronics Corp's long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Alphabet Inc Class C | Samsung Electronics vs. Meta Platforms |
| Astronics Corp vs. Firan Technology Group | Astronics Corp vs. 808 Renewable Energy | Astronics Corp vs. Park Electrochemical | Astronics Corp vs. Innovative Solutions and |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges |