Correlation Between Samsung Electronics and Conquest Resources
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Conquest Resources 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 Conquest Resources 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 Conquest Resources Limited, you can compare the effects of market volatilities on Samsung Electronics and Conquest Resources 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 Conquest Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Conquest Resources.
Diversification Opportunities for Samsung Electronics and Conquest Resources
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Conquest is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Conquest Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conquest Resources 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 Conquest Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conquest Resources has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Conquest Resources go up and down completely randomly.
Pair Corralation between Samsung Electronics and Conquest Resources
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.02 times more return on investment than Conquest Resources. However, Samsung Electronics Co is 50.14 times less risky than Conquest Resources. It trades about 0.13 of its potential returns per unit of risk. Conquest Resources Limited is currently generating about -0.05 per unit of risk. If you would invest 4,007 in Samsung Electronics Co on August 29, 2024 and sell it today you would earn a total of 53.00 from holding Samsung Electronics Co or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Conquest Resources Limited
Performance |
| Timeline |
| Samsung Electronics |
| Conquest Resources |
Samsung Electronics and Conquest Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Conquest Resources
The main advantage of trading using opposite Samsung Electronics and Conquest Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Conquest Resources 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 Conquest Resources will offset losses from the drop in Conquest Resources' long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Alphabet Inc Class C | Samsung Electronics vs. Meta Platforms |
| Conquest Resources vs. Silver Hammer Mining | Conquest Resources vs. Reyna Silver Corp | Conquest Resources vs. Guanajuato Silver | Conquest Resources vs. Silver One Resources |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |