Correlation Between Samsung Electronics and EMagin
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and EMagin 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 EMagin 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 EMagin, you can compare the effects of market volatilities on Samsung Electronics and EMagin 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 EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and EMagin.
Diversification Opportunities for Samsung Electronics and EMagin
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and EMagin is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin 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 EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and EMagin go up and down completely randomly.
Pair Corralation between Samsung Electronics and EMagin
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.09 times more return on investment than EMagin. However, Samsung Electronics Co is 10.74 times less risky than EMagin. It trades about 0.1 of its potential returns per unit of risk. EMagin is currently generating about 0.0 per unit of risk. If you would invest 3,953 in Samsung Electronics Co on August 31, 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 Together |
| Strength | Significant |
| Accuracy | 8.58% |
| Values | Daily Returns |
Samsung Electronics Co vs. EMagin
Performance |
| Timeline |
| Samsung Electronics |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and EMagin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and EMagin
The main advantage of trading using opposite Samsung Electronics and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin's long position.| Samsung Electronics vs. Legacy Education | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. NVIDIA | Samsung Electronics vs. Microsoft |
| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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