Correlation Between Samsung Electronics and Giga Metals
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Giga Metals 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 Giga Metals 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 Giga Metals, you can compare the effects of market volatilities on Samsung Electronics and Giga Metals 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 Giga Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Giga Metals.
Diversification Opportunities for Samsung Electronics and Giga Metals
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Giga is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Giga Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giga Metals 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 Giga Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giga Metals has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Giga Metals go up and down completely randomly.
Pair Corralation between Samsung Electronics and Giga Metals
If you would invest 3,979 in Samsung Electronics Co on August 29, 2024 and sell it today you would earn a total of 81.00 from holding Samsung Electronics Co or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Samsung Electronics Co vs. Giga Metals
Performance |
| Timeline |
| Samsung Electronics |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Giga Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Giga Metals
The main advantage of trading using opposite Samsung Electronics and Giga Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Giga Metals 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 Giga Metals will offset losses from the drop in Giga Metals' long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Alphabet Inc Class C | Samsung Electronics vs. Meta Platforms |
| Giga Metals vs. Canada Nickel | Giga Metals vs. Giga Metals Corp | Giga Metals vs. Talon Metals Corp | Giga Metals vs. FPX Nickel 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |