Correlation Between Samsung Electronics and EnQuest PLC
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and EnQuest PLC 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 EnQuest PLC 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 EnQuest PLC, you can compare the effects of market volatilities on Samsung Electronics and EnQuest PLC 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 EnQuest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and EnQuest PLC.
Diversification Opportunities for Samsung Electronics and EnQuest PLC
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and EnQuest is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and EnQuest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EnQuest PLC 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 EnQuest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EnQuest PLC has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and EnQuest PLC go up and down completely randomly.
Pair Corralation between Samsung Electronics and EnQuest PLC
If you would invest 14.00 in EnQuest PLC on August 30, 2024 and sell it today you would earn a total of 0.00 from holding EnQuest PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. EnQuest PLC
Performance |
| Timeline |
| Samsung Electronics |
| EnQuest PLC |
Samsung Electronics and EnQuest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and EnQuest PLC
The main advantage of trading using opposite Samsung Electronics and EnQuest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, EnQuest PLC 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 EnQuest PLC will offset losses from the drop in EnQuest PLC'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 |
| EnQuest PLC vs. Permian Resources | EnQuest PLC vs. Devon Energy | EnQuest PLC vs. EOG Resources | EnQuest PLC vs. Coterra Energy |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |