Correlation Between Samsung Electronics and Janel Corp
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Janel Corp 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 Janel Corp 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 Janel Corp, you can compare the effects of market volatilities on Samsung Electronics and Janel Corp 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 Janel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Janel Corp.
Diversification Opportunities for Samsung Electronics and Janel Corp
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Janel is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Janel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janel Corp 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 Janel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janel Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Janel Corp go up and down completely randomly.
Pair Corralation between Samsung Electronics and Janel Corp
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.03 times more return on investment than Janel Corp. However, Samsung Electronics Co is 34.73 times less risky than Janel Corp. It trades about 0.13 of its potential returns per unit of risk. Janel Corp is currently generating about -0.06 per unit of risk. If you would invest 4,007 in Samsung Electronics Co on September 1, 2024 and sell it today you would earn a total of 53.00 from holding Samsung Electronics Co or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Samsung Electronics Co vs. Janel Corp
Performance |
| Timeline |
| Samsung Electronics |
| Janel Corp |
Samsung Electronics and Janel Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Janel Corp
The main advantage of trading using opposite Samsung Electronics and Janel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Janel Corp 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 Janel Corp will offset losses from the drop in Janel Corp's long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
| Janel Corp vs. FedEx | Janel Corp vs. GXO Logistics | Janel Corp vs. JB Hunt Transport | Janel Corp vs. Expeditors International of |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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