Correlation Between Samsung Electronics and Comepay
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Comepay 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 Comepay 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 Comepay, you can compare the effects of market volatilities on Samsung Electronics and Comepay 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 Comepay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Comepay.
Diversification Opportunities for Samsung Electronics and Comepay
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Comepay is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Comepay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comepay 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 Comepay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comepay has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Comepay go up and down completely randomly.
Pair Corralation between Samsung Electronics and Comepay
If you would invest 0.01 in Comepay on October 29, 2024 and sell it today you would earn a total of 0.00 from holding Comepay or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Comepay
Performance |
| Timeline |
| Samsung Electronics |
| Comepay |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Comepay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Comepay
The main advantage of trading using opposite Samsung Electronics and Comepay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Comepay 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 Comepay will offset losses from the drop in Comepay's long position.| Samsung Electronics vs. ProSiebenSat1 Media AG | Samsung Electronics vs. RTL Group SA | Samsung Electronics vs. iHeartMedia | Samsung Electronics vs. ITV PLC ADR |
| Comepay vs. Direct Communication Solutions | Comepay vs. Datametrex AI Limited | Comepay vs. CSE Global Limited | Comepay vs. Appen Limited |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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