Correlation Between Samsung Electronics and Greystone Logistics
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Greystone Logistics 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 Greystone Logistics 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 Greystone Logistics, you can compare the effects of market volatilities on Samsung Electronics and Greystone Logistics 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 Greystone Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Greystone Logistics.
Diversification Opportunities for Samsung Electronics and Greystone Logistics
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Greystone is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Greystone Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greystone Logistics 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 Greystone Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greystone Logistics has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Greystone Logistics go up and down completely randomly.
Pair Corralation between Samsung Electronics and Greystone Logistics
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.02 times more return on investment than Greystone Logistics. However, Samsung Electronics Co is 51.49 times less risky than Greystone Logistics. It trades about 0.13 of its potential returns per unit of risk. Greystone Logistics is currently generating about -0.13 per unit of risk. If you would invest 4,033 in Samsung Electronics Co on August 28, 2024 and sell it today you would earn a total of 27.00 from holding Samsung Electronics Co or generate 0.67% 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. Greystone Logistics
Performance |
| Timeline |
| Samsung Electronics |
| Greystone Logistics |
Samsung Electronics and Greystone Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Greystone Logistics
The main advantage of trading using opposite Samsung Electronics and Greystone Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Greystone Logistics 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 Greystone Logistics will offset losses from the drop in Greystone Logistics' long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
| Greystone Logistics vs. Ascendant Resources | Greystone Logistics vs. Cantex Mine Development | Greystone Logistics vs. Amarc Resources | Greystone Logistics vs. Sterling Metals Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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