Correlation Between Samsung Electronics and Lava Medtech
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Lava Medtech 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 Lava Medtech 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 Lava Medtech Acquisition, you can compare the effects of market volatilities on Samsung Electronics and Lava Medtech 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 Lava Medtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Lava Medtech.
Diversification Opportunities for Samsung Electronics and Lava Medtech
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Lava is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Lava Medtech Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lava Medtech Acquisition 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 Lava Medtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lava Medtech Acquisition has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Lava Medtech go up and down completely randomly.
Pair Corralation between Samsung Electronics and Lava Medtech
If you would invest 1,040 in Lava Medtech Acquisition on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Lava Medtech Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Samsung Electronics Co vs. Lava Medtech Acquisition
Performance |
| Timeline |
| Samsung Electronics |
| Lava Medtech Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Lava Medtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Lava Medtech
The main advantage of trading using opposite Samsung Electronics and Lava Medtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Lava Medtech 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 Lava Medtech will offset losses from the drop in Lava Medtech's long position.| Samsung Electronics vs. Legacy Education | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. NVIDIA | Samsung Electronics vs. Microsoft |
| Lava Medtech vs. Codexis | Lava Medtech vs. Ecovyst | Lava Medtech vs. Sealed Air | Lava Medtech vs. Air Products and |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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