Correlation Between Samsung Electronics and PT Bank
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and PT Bank 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 PT Bank 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 PT Bank Rakyat, you can compare the effects of market volatilities on Samsung Electronics and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and PT Bank.
Diversification Opportunities for Samsung Electronics and PT Bank
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and BKRKF is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and PT Bank Rakyat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Rakyat 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Rakyat has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and PT Bank go up and down completely randomly.
Pair Corralation between Samsung Electronics and PT Bank
Assuming the 90 days horizon Samsung Electronics is expected to generate 1.36 times less return on investment than PT Bank. But when comparing it to its historical volatility, Samsung Electronics Co is 87.83 times less risky than PT Bank. It trades about 0.1 of its potential returns per unit of risk. PT Bank Rakyat is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 34.00 in PT Bank Rakyat on September 1, 2024 and sell it today you would lose (9.00) from holding PT Bank Rakyat or give up 26.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.94% |
| Values | Daily Returns |
Samsung Electronics Co vs. PT Bank Rakyat
Performance |
| Timeline |
| Samsung Electronics |
| PT Bank Rakyat |
Samsung Electronics and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and PT Bank
The main advantage of trading using opposite Samsung Electronics and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank'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 |
| PT Bank vs. Piraeus Bank SA | PT Bank vs. Turkiye Garanti Bankasi | PT Bank vs. Delhi Bank Corp | PT Bank vs. Uwharrie Capital Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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