Correlation Between Samsung Electronics and Healthcare Services
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Healthcare Services 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 Healthcare Services 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 Healthcare Services Acquisition, you can compare the effects of market volatilities on Samsung Electronics and Healthcare Services 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 Healthcare Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Healthcare Services.
Diversification Opportunities for Samsung Electronics and Healthcare Services
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Healthcare is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Healthcare Services Acquisitio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare Services 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 Healthcare Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare Services has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Healthcare Services go up and down completely randomly.
Pair Corralation between Samsung Electronics and Healthcare Services
If you would invest 3,953 in Samsung Electronics Co on September 1, 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 | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Healthcare Services Acquisitio
Performance |
| Timeline |
| Samsung Electronics |
| Healthcare Services |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Healthcare Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Healthcare Services
The main advantage of trading using opposite Samsung Electronics and Healthcare Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Healthcare Services 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 Healthcare Services will offset losses from the drop in Healthcare Services' long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
| Healthcare Services vs. Sphere Entertainment Co | Healthcare Services vs. Dave Busters Entertainment | Healthcare Services vs. Space Communication | Healthcare Services vs. Pinterest |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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