Correlation Between Samsung Electronics and Banco De
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Banco De 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 Banco De 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 Banco de Sabadell, you can compare the effects of market volatilities on Samsung Electronics and Banco De 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 Banco De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Banco De.
Diversification Opportunities for Samsung Electronics and Banco De
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samsung and Banco is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Banco de Sabadell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco de Sabadell 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 Banco De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco de Sabadell has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Banco De go up and down completely randomly.
Pair Corralation between Samsung Electronics and Banco De
If you would invest (100.00) in Banco de Sabadell on November 30, 2024 and sell it today you would earn a total of 100.00 from holding Banco de Sabadell or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Banco de Sabadell
Performance |
| Timeline |
| Samsung Electronics |
| Banco de Sabadell |
Risk-Adjusted Performance
Good
Weak | Strong |
Samsung Electronics and Banco De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Banco De
The main advantage of trading using opposite Samsung Electronics and Banco De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Banco De 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 Banco De will offset losses from the drop in Banco De's long position.| Samsung Electronics vs. Pfizer Inc | Samsung Electronics vs. American Express | Samsung Electronics vs. Alcoa Corp | Samsung Electronics vs. Cisco Systems |
| Banco De vs. Banco Bilbao Vizcaya | Banco De vs. ABN AMRO Bank | Banco De vs. Bank of America | Banco De vs. Bank of America |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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