Correlation Between Samsung Electronics and INFICON Holding
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and INFICON Holding 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 INFICON Holding 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 INFICON Holding AG, you can compare the effects of market volatilities on Samsung Electronics and INFICON Holding 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 INFICON Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and INFICON Holding.
Diversification Opportunities for Samsung Electronics and INFICON Holding
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and INFICON is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and INFICON Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFICON Holding AG 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 INFICON Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFICON Holding AG has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and INFICON Holding go up and down completely randomly.
Pair Corralation between Samsung Electronics and INFICON Holding
If you would invest 4,060 in Samsung Electronics Co on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Samsung Electronics Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Samsung Electronics Co vs. INFICON Holding AG
Performance |
| Timeline |
| Samsung Electronics |
| INFICON Holding AG |
Samsung Electronics and INFICON Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and INFICON Holding
The main advantage of trading using opposite Samsung Electronics and INFICON Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, INFICON Holding 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 INFICON Holding will offset losses from the drop in INFICON Holding's long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp | Samsung Electronics vs. TCL Electronics Holdings |
| INFICON Holding vs. Copa Holdings SA | INFICON Holding vs. United Airlines Holdings | INFICON Holding vs. Delta Air Lines | INFICON Holding vs. SkyWest |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |