Correlation Between Samsung Electronics and Pan Pacific
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Pan Pacific 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 Pan Pacific 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 Pan Pacific International, you can compare the effects of market volatilities on Samsung Electronics and Pan Pacific 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 Pan Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Pan Pacific.
Diversification Opportunities for Samsung Electronics and Pan Pacific
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Pan is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Pan Pacific International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Pacific International 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 Pan Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Pacific International has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Pan Pacific go up and down completely randomly.
Pair Corralation between Samsung Electronics and Pan Pacific
If you would invest 4,060 in Samsung Electronics Co on August 28, 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 | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Samsung Electronics Co vs. Pan Pacific International
Performance |
| Timeline |
| Samsung Electronics |
| Pan Pacific International |
Samsung Electronics and Pan Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Pan Pacific
The main advantage of trading using opposite Samsung Electronics and Pan Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Pan Pacific 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 Pan Pacific will offset losses from the drop in Pan Pacific's long position.| Samsung Electronics vs. Copa Holdings SA | Samsung Electronics vs. United Airlines Holdings | Samsung Electronics vs. Delta Air Lines | Samsung Electronics vs. SkyWest |
| Pan Pacific vs. Wal Mart de | Pan Pacific vs. Dollarama | Pan Pacific vs. PriceSmart | Pan Pacific vs. Dollar General |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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