Correlation Between Samsung Electronics and 1606 Corp
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and 1606 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 1606 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 1606 Corp, you can compare the effects of market volatilities on Samsung Electronics and 1606 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 1606 Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and 1606 Corp.
Diversification Opportunities for Samsung Electronics and 1606 Corp
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and 1606 is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and 1606 Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1606 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 1606 Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1606 Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and 1606 Corp go up and down completely randomly.
Pair Corralation between Samsung Electronics and 1606 Corp
If you would invest 1.40 in 1606 Corp on August 25, 2024 and sell it today you would lose (0.20) from holding 1606 Corp or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. 1606 Corp
Performance |
| Timeline |
| Samsung Electronics |
| 1606 Corp |
Samsung Electronics and 1606 Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and 1606 Corp
The main advantage of trading using opposite Samsung Electronics and 1606 Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, 1606 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 1606 Corp will offset losses from the drop in 1606 Corp's long position.| Samsung Electronics vs. Copa Holdings SA | Samsung Electronics vs. United Airlines Holdings | Samsung Electronics vs. Delta Air Lines | Samsung Electronics vs. SkyWest |
| 1606 Corp vs. British American Tobacco | 1606 Corp vs. Imperial Brands PLC | 1606 Corp vs. RLX Technology | 1606 Corp vs. British American Tobacco |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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