Correlation Between Samsung Electronics and Ault Alliance
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Ault Alliance 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 Ault Alliance 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 Ault Alliance, you can compare the effects of market volatilities on Samsung Electronics and Ault Alliance 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 Ault Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Ault Alliance.
Diversification Opportunities for Samsung Electronics and Ault Alliance
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Ault is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Ault Alliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ault Alliance 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 Ault Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ault Alliance has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Ault Alliance go up and down completely randomly.
Pair Corralation between Samsung Electronics and Ault Alliance
If you would invest 21.00 in Ault Alliance on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Ault Alliance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Samsung Electronics Co vs. Ault Alliance
Performance |
| Timeline |
| Samsung Electronics |
| Ault Alliance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Samsung Electronics and Ault Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Ault Alliance
The main advantage of trading using opposite Samsung Electronics and Ault Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Ault Alliance 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 Ault Alliance will offset losses from the drop in Ault Alliance's long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
| Ault Alliance vs. Lion One Metals | Ault Alliance vs. Uranium Energy Corp | Ault Alliance vs. Aerofoam Metals | Ault Alliance vs. Chester Mining |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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