Correlation Between Samsung Electronics and Halitron
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Halitron 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 Halitron 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 Halitron, you can compare the effects of market volatilities on Samsung Electronics and Halitron 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 Halitron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Halitron.
Diversification Opportunities for Samsung Electronics and Halitron
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Halitron is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Halitron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halitron 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 Halitron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halitron has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Halitron go up and down completely randomly.
Pair Corralation between Samsung Electronics and Halitron
If you would invest 3,953 in Samsung Electronics Co on October 9, 2024 and sell it today you would earn a total of 107.00 from holding Samsung Electronics Co or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Samsung Electronics Co vs. Halitron
Performance |
| Timeline |
| Samsung Electronics |
| Halitron |
Samsung Electronics and Halitron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Halitron
The main advantage of trading using opposite Samsung Electronics and Halitron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Halitron 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 Halitron will offset losses from the drop in Halitron's long position.| Samsung Electronics vs. XCPCNL Business Services | Samsung Electronics vs. International Consolidated Companies | Samsung Electronics vs. Mills Music Trust | Samsung Electronics vs. Citrine Global Corp |
| Halitron vs. Mentor Capital | Halitron vs. ICOA Inc | Halitron vs. Magic Empire Global | Halitron vs. Zhong Yang Financial |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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