Correlation Between Samsung Electronics and Kallo
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Kallo 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 Kallo 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 Kallo Inc, you can compare the effects of market volatilities on Samsung Electronics and Kallo 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 Kallo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Kallo.
Diversification Opportunities for Samsung Electronics and Kallo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Kallo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Kallo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kallo Inc 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 Kallo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kallo Inc has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Kallo go up and down completely randomly.
Pair Corralation between Samsung Electronics and Kallo
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.02 times more return on investment than Kallo. However, Samsung Electronics Co is 59.32 times less risky than Kallo. It trades about 0.09 of its potential returns per unit of risk. Kallo Inc is currently generating about -0.05 per unit of risk. If you would invest 3,953 in Samsung Electronics Co on November 2, 2024 and sell it today you would earn a total of 107.00 from holding Samsung Electronics Co or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 89.52% |
| Values | Daily Returns |
Samsung Electronics Co vs. Kallo Inc
Performance |
| Timeline |
| Samsung Electronics |
| Kallo Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Kallo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Kallo
The main advantage of trading using opposite Samsung Electronics and Kallo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Kallo 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 Kallo will offset losses from the drop in Kallo'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 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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