Correlation Between Samsung Electronics and FP Newspapers
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and FP Newspapers 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 FP Newspapers 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 FP Newspapers, you can compare the effects of market volatilities on Samsung Electronics and FP Newspapers 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 FP Newspapers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and FP Newspapers.
Diversification Opportunities for Samsung Electronics and FP Newspapers
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and FPNUF is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and FP Newspapers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FP Newspapers 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 FP Newspapers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FP Newspapers has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and FP Newspapers go up and down completely randomly.
Pair Corralation between Samsung Electronics and FP Newspapers
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.03 times more return on investment than FP Newspapers. However, Samsung Electronics Co is 36.4 times less risky than FP Newspapers. It trades about 0.16 of its potential returns per unit of risk. FP Newspapers is currently generating about -0.09 per unit of risk. If you would invest 3,983 in Samsung Electronics Co on November 28, 2024 and sell it today you would earn a total of 77.00 from holding Samsung Electronics Co or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.8% |
| Values | Daily Returns |
Samsung Electronics Co vs. FP Newspapers
Performance |
| Timeline |
| Samsung Electronics |
| FP Newspapers |
Samsung Electronics and FP Newspapers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and FP Newspapers
The main advantage of trading using opposite Samsung Electronics and FP Newspapers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, FP Newspapers 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 FP Newspapers will offset losses from the drop in FP Newspapers' long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp | Samsung Electronics vs. TCL Electronics Holdings |
| FP Newspapers vs. Uber Technologies | FP Newspapers vs. NetEase | FP Newspapers vs. Sphere 3D Corp | FP Newspapers vs. Paranovus Entertainment Technology |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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