Correlation Between Samsung Electronics and Chugai Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Chugai Pharmaceutical 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 Chugai Pharmaceutical 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 Chugai Pharmaceutical Co, you can compare the effects of market volatilities on Samsung Electronics and Chugai Pharmaceutical 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 Chugai Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Chugai Pharmaceutical.
Diversification Opportunities for Samsung Electronics and Chugai Pharmaceutical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Chugai is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Chugai Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chugai Pharmaceutical 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 Chugai Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chugai Pharmaceutical has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Chugai Pharmaceutical go up and down completely randomly.
Pair Corralation between Samsung Electronics and Chugai Pharmaceutical
If you would invest 4,060 in Samsung Electronics Co on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Samsung Electronics Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Samsung Electronics Co vs. Chugai Pharmaceutical Co
Performance |
| Timeline |
| Samsung Electronics |
| Chugai Pharmaceutical |
Samsung Electronics and Chugai Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Chugai Pharmaceutical
The main advantage of trading using opposite Samsung Electronics and Chugai Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Chugai Pharmaceutical 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 Chugai Pharmaceutical will offset losses from the drop in Chugai Pharmaceutical'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 |
| Chugai Pharmaceutical vs. Sanofi ADR | Chugai Pharmaceutical vs. Bristol Myers Squibb | Chugai Pharmaceutical vs. AstraZeneca PLC ADR | Chugai Pharmaceutical vs. Gilead Sciences |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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