Correlation Between Samsung Electronics and Hunter Creek
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Hunter Creek 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 Hunter Creek 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 Hunter Creek Mining, you can compare the effects of market volatilities on Samsung Electronics and Hunter Creek 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 Hunter Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Hunter Creek.
Diversification Opportunities for Samsung Electronics and Hunter Creek
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Samsung and Hunter is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Hunter Creek Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunter Creek Mining 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 Hunter Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunter Creek Mining has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Hunter Creek go up and down completely randomly.
Pair Corralation between Samsung Electronics and Hunter Creek
If you would invest 9.80 in Hunter Creek Mining on October 12, 2024 and sell it today you would earn a total of 0.00 from holding Hunter Creek Mining or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Hunter Creek Mining
Performance |
| Timeline |
| Samsung Electronics |
| Hunter Creek Mining |
Samsung Electronics and Hunter Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Hunter Creek
The main advantage of trading using opposite Samsung Electronics and Hunter Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Hunter Creek 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 Hunter Creek will offset losses from the drop in Hunter Creek'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 |
| Hunter Creek vs. Genfit | Hunter Creek vs. Arhaus Inc | Hunter Creek vs. Catalyst Pharmaceuticals | Hunter Creek vs. Asbury Automotive Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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