Correlation Between Samsung Electronics and EF Hutton
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and EF Hutton 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 EF Hutton 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 EF Hutton Acquisition, you can compare the effects of market volatilities on Samsung Electronics and EF Hutton 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 EF Hutton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and EF Hutton.
Diversification Opportunities for Samsung Electronics and EF Hutton
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and EFHTW is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and EF Hutton Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EF Hutton Acquisition 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 EF Hutton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EF Hutton Acquisition has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and EF Hutton go up and down completely randomly.
Pair Corralation between Samsung Electronics and EF Hutton
If you would invest 2.01 in EF Hutton Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding EF Hutton Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Samsung Electronics Co vs. EF Hutton Acquisition
Performance |
| Timeline |
| Samsung Electronics |
| EF Hutton Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and EF Hutton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and EF Hutton
The main advantage of trading using opposite Samsung Electronics and EF Hutton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, EF Hutton 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 EF Hutton will offset losses from the drop in EF Hutton's long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |