Correlation Between Samsung Electronics and Los Andes
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Los Andes 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 Los Andes 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 Los Andes Copper, you can compare the effects of market volatilities on Samsung Electronics and Los Andes 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 Los Andes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Los Andes.
Diversification Opportunities for Samsung Electronics and Los Andes
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Los is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Los Andes Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Los Andes Copper 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 Los Andes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Los Andes Copper has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Los Andes go up and down completely randomly.
Pair Corralation between Samsung Electronics and Los Andes
If you would invest 4,060 in Samsung Electronics Co on September 1, 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Los Andes Copper
Performance |
| Timeline |
| Samsung Electronics |
| Los Andes Copper |
Samsung Electronics and Los Andes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Los Andes
The main advantage of trading using opposite Samsung Electronics and Los Andes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Los Andes 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 Los Andes will offset losses from the drop in Los Andes' long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
| Los Andes vs. South32 Limited | Los Andes vs. NioCorp Developments Ltd | Los Andes vs. HUMANA INC | Los Andes vs. SCOR PK |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |