Correlation Between Samsung Electronics and El Puerto
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and El Puerto 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 El Puerto 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 El Puerto de, you can compare the effects of market volatilities on Samsung Electronics and El Puerto 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 El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and El Puerto.
Diversification Opportunities for Samsung Electronics and El Puerto
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and ELPQF is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de 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 El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and El Puerto go up and down completely randomly.
Pair Corralation between Samsung Electronics and El Puerto
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.02 times more return on investment than El Puerto. However, Samsung Electronics Co is 51.05 times less risky than El Puerto. It trades about 0.1 of its potential returns per unit of risk. El Puerto de is currently generating about -0.01 per unit of risk. If you would invest 3,953 in Samsung Electronics Co on August 27, 2024 and sell it today you would earn a total of 107.00 from holding Samsung Electronics Co or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 53.94% |
| Values | Daily Returns |
Samsung Electronics Co vs. El Puerto de
Performance |
| Timeline |
| Samsung Electronics |
| El Puerto de |
Samsung Electronics and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and El Puerto
The main advantage of trading using opposite Samsung Electronics and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto'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 |
| El Puerto vs. Mativ Holdings | El Puerto vs. NioCorp Developments Ltd | El Puerto vs. East Africa Metals | El Puerto vs. Summit Materials |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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