Correlation Between Samsung Electronics and Financial Strategies
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Financial Strategies 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 Financial Strategies 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 Financial Strategies Acquisition, you can compare the effects of market volatilities on Samsung Electronics and Financial Strategies 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 Financial Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Financial Strategies.
Diversification Opportunities for Samsung Electronics and Financial Strategies
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Financial is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Financial Strategies Acquisiti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Strategies 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 Financial Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Strategies has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Financial Strategies go up and down completely randomly.
Pair Corralation between Samsung Electronics and Financial Strategies
If you would invest 1,090 in Financial Strategies Acquisition on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Financial Strategies Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Samsung Electronics Co vs. Financial Strategies Acquisiti
Performance |
| Timeline |
| Samsung Electronics |
| Financial Strategies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Financial Strategies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Financial Strategies
The main advantage of trading using opposite Samsung Electronics and Financial Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Financial Strategies 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 Financial Strategies will offset losses from the drop in Financial Strategies' long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Alphabet Inc Class C | Samsung Electronics vs. Meta Platforms |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |