Correlation Between Samsung Electronics and Landcadia Holdings
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Landcadia Holdings 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 Landcadia Holdings 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 Landcadia Holdings II, you can compare the effects of market volatilities on Samsung Electronics and Landcadia Holdings 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 Landcadia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Landcadia Holdings.
Diversification Opportunities for Samsung Electronics and Landcadia Holdings
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Landcadia is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Landcadia Holdings II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landcadia Holdings 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 Landcadia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landcadia Holdings has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Landcadia Holdings go up and down completely randomly.
Pair Corralation between Samsung Electronics and Landcadia Holdings
If you would invest 4,007 in Samsung Electronics Co on September 3, 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 Together |
| Strength | Significant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Samsung Electronics Co vs. Landcadia Holdings II
Performance |
| Timeline |
| Samsung Electronics |
| Landcadia Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Landcadia Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Landcadia Holdings
The main advantage of trading using opposite Samsung Electronics and Landcadia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Landcadia Holdings 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 Landcadia Holdings will offset losses from the drop in Landcadia Holdings' long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Amazon Inc | Samsung Electronics vs. Alphabet Inc Class C |
| Landcadia Holdings vs. Meiwu Technology Co | Landcadia Holdings vs. MGIC Investment Corp | Landcadia Holdings vs. LB Foster | Landcadia Holdings vs. Employers 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |