Correlation Between Samsung Electronics and Berenson Acquisition
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Berenson Acquisition 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 Berenson Acquisition 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 Berenson Acquisition Corp, you can compare the effects of market volatilities on Samsung Electronics and Berenson Acquisition 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 Berenson Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Berenson Acquisition.
Diversification Opportunities for Samsung Electronics and Berenson Acquisition
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Berenson is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Berenson Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berenson Acquisition Corp 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 Berenson Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berenson Acquisition Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Berenson Acquisition go up and down completely randomly.
Pair Corralation between Samsung Electronics and Berenson Acquisition
If you would invest 1,064 in Berenson Acquisition Corp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Berenson Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Samsung Electronics Co vs. Berenson Acquisition Corp
Performance |
| Timeline |
| Samsung Electronics |
| Berenson Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Samsung Electronics and Berenson Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Berenson Acquisition
The main advantage of trading using opposite Samsung Electronics and Berenson Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Berenson Acquisition 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 Berenson Acquisition will offset losses from the drop in Berenson Acquisition's long position.| Samsung Electronics vs. Legacy Education | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. NVIDIA | Samsung Electronics vs. Microsoft |
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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