Correlation Between Samsung Electronics and Haw ParLtd
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Haw ParLtd 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 Haw ParLtd 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 Haw Par, you can compare the effects of market volatilities on Samsung Electronics and Haw ParLtd 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 Haw ParLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Haw ParLtd.
Diversification Opportunities for Samsung Electronics and Haw ParLtd
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Haw is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Haw Par in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haw ParLtd 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 Haw ParLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haw ParLtd has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Haw ParLtd go up and down completely randomly.
Pair Corralation between Samsung Electronics and Haw ParLtd
If you would invest 2,864 in Haw Par on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Haw Par or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 90.48% |
| Values | Daily Returns |
Samsung Electronics Co vs. Haw Par
Performance |
| Timeline |
| Samsung Electronics |
| Haw ParLtd |
Samsung Electronics and Haw ParLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Haw ParLtd
The main advantage of trading using opposite Samsung Electronics and Haw ParLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Haw ParLtd 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 Haw ParLtd will offset losses from the drop in Haw ParLtd's long position.| Samsung Electronics vs. ProSiebenSat1 Media AG | Samsung Electronics vs. RTL Group SA | Samsung Electronics vs. iHeartMedia | Samsung Electronics vs. ITV PLC ADR |
| Haw ParLtd vs. Sanofi ADR | Haw ParLtd vs. AstraZeneca PLC ADR | Haw ParLtd vs. Roche Holding Ltd | Haw ParLtd vs. GlaxoSmithKline PLC ADR |
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 CEOs Directory module to screen CEOs from public companies around the world.
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