Correlation Between Samsung Electronics and Chicken Soup
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Chicken Soup 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 Chicken Soup 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 Chicken Soup For, you can compare the effects of market volatilities on Samsung Electronics and Chicken Soup 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 Chicken Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Chicken Soup.
Diversification Opportunities for Samsung Electronics and Chicken Soup
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Chicken is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Chicken Soup For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicken Soup For 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 Chicken Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicken Soup For has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Chicken Soup go up and down completely randomly.
Pair Corralation between Samsung Electronics and Chicken Soup
Assuming the 90 days horizon Samsung Electronics is expected to generate 18.55 times less return on investment than Chicken Soup. But when comparing it to its historical volatility, Samsung Electronics Co is 355.65 times less risky than Chicken Soup. It trades about 0.11 of its potential returns per unit of risk. Chicken Soup For is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 609.00 in Chicken Soup For on September 2, 2024 and sell it today you would lose (569.00) from holding Chicken Soup For or give up 93.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 57.66% |
| Values | Daily Returns |
Samsung Electronics Co vs. Chicken Soup For
Performance |
| Timeline |
| Samsung Electronics |
| Chicken Soup For |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Chicken Soup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Chicken Soup
The main advantage of trading using opposite Samsung Electronics and Chicken Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Chicken Soup 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 Chicken Soup will offset losses from the drop in Chicken Soup's long position.| Samsung Electronics vs. Legacy Education | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. NVIDIA | Samsung Electronics vs. Microsoft |
| Chicken Soup vs. AMC Networks | Chicken Soup vs. Lions Gate Entertainment | Chicken Soup vs. Reservoir Media | Chicken Soup vs. Marcus |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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