Correlation Between Samsung Electronics and Express
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Express 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 Express 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 Express, you can compare the effects of market volatilities on Samsung Electronics and Express 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 Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Express.
Diversification Opportunities for Samsung Electronics and Express
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Express is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Express 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 Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Express has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Express go up and down completely randomly.
Pair Corralation between Samsung Electronics and Express
If you would invest 76.00 in Express on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Express or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Samsung Electronics Co vs. Express
Performance |
| Timeline |
| Samsung Electronics |
| Express |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Express
The main advantage of trading using opposite Samsung Electronics and Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Express 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 Express will offset losses from the drop in Express' long position.| Samsung Electronics vs. Copa Holdings SA | Samsung Electronics vs. United Airlines Holdings | Samsung Electronics vs. Delta Air Lines | Samsung Electronics vs. SkyWest |
| Express vs. Koss Corporation | Express vs. BlackBerry | Express vs. Castor Maritime | Express vs. Clover Health Investments |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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