Correlation Between Samsung Electronics and Interact
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Interact 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 Interact 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 Interact TV, you can compare the effects of market volatilities on Samsung Electronics and Interact 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 Interact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Interact.
Diversification Opportunities for Samsung Electronics and Interact
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Interact is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Interact TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interact TV 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 Interact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interact TV has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Interact go up and down completely randomly.
Pair Corralation between Samsung Electronics and Interact
If you would invest 0.01 in Interact TV on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Interact TV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Samsung Electronics Co vs. Interact TV
Performance |
| Timeline |
| Samsung Electronics |
| Interact TV |
Samsung Electronics and Interact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Interact
The main advantage of trading using opposite Samsung Electronics and Interact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Interact 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 Interact will offset losses from the drop in Interact's long position.| Samsung Electronics vs. Legacy Education | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. NVIDIA | Samsung Electronics vs. Microsoft |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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