Correlation Between Samsung Electronics and DHACW Old
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and DHACW Old 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 DHACW Old 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 DHACW Old, you can compare the effects of market volatilities on Samsung Electronics and DHACW Old 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 DHACW Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and DHACW Old.
Diversification Opportunities for Samsung Electronics and DHACW Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and DHACW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and DHACW Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHACW Old 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 DHACW Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHACW Old has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and DHACW Old go up and down completely randomly.
Pair Corralation between Samsung Electronics and DHACW Old
If you would invest 3,982 in Samsung Electronics Co on January 15, 2025 and sell it today you would earn a total of 78.00 from holding Samsung Electronics Co or generate 1.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. DHACW Old
Performance |
| Timeline |
| Samsung Electronics |
| DHACW Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Samsung Electronics and DHACW Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and DHACW Old
The main advantage of trading using opposite Samsung Electronics and DHACW Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, DHACW Old 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 DHACW Old will offset losses from the drop in DHACW Old's long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Sony Group Corp | Samsung Electronics vs. TCL Electronics Holdings | Samsung Electronics vs. Sharp Corp ADR |
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.
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