Correlation Between Samsung Electronics and First Northern
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and First Northern 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 First Northern 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 First Northern Community, you can compare the effects of market volatilities on Samsung Electronics and First Northern 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 First Northern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and First Northern.
Diversification Opportunities for Samsung Electronics and First Northern
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and First is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and First Northern Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Northern Community 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 First Northern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Northern Community has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and First Northern go up and down completely randomly.
Pair Corralation between Samsung Electronics and First Northern
If you would invest 995.00 in First Northern Community on August 29, 2024 and sell it today you would earn a total of 5.00 from holding First Northern Community or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samsung Electronics Co vs. First Northern Community
Performance |
| Timeline |
| Samsung Electronics |
| First Northern Community |
Samsung Electronics and First Northern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and First Northern
The main advantage of trading using opposite Samsung Electronics and First Northern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, First Northern 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 First Northern will offset losses from the drop in First Northern's long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Alphabet Inc Class C | Samsung Electronics vs. Meta Platforms |
| First Northern vs. Invesco High Income | First Northern vs. Blackrock Muniholdings Ny | First Northern vs. Nuveen California Select | First Northern vs. MFS Investment Grade |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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