Correlation Between Samsung Electronics and MBT Bancshares
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and MBT Bancshares 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 MBT Bancshares 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 MBT Bancshares, you can compare the effects of market volatilities on Samsung Electronics and MBT Bancshares 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 MBT Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and MBT Bancshares.
Diversification Opportunities for Samsung Electronics and MBT Bancshares
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and MBT is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and MBT Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBT Bancshares 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 MBT Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBT Bancshares has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and MBT Bancshares go up and down completely randomly.
Pair Corralation between Samsung Electronics and MBT Bancshares
If you would invest 1,900 in MBT Bancshares on September 1, 2024 and sell it today you would earn a total of 55.00 from holding MBT Bancshares or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. MBT Bancshares
Performance |
| Timeline |
| Samsung Electronics |
| MBT Bancshares |
Samsung Electronics and MBT Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and MBT Bancshares
The main advantage of trading using opposite Samsung Electronics and MBT Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, MBT Bancshares 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 MBT Bancshares will offset losses from the drop in MBT Bancshares' long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
| MBT Bancshares vs. Huntington Bancshares Incorporated | MBT Bancshares vs. KeyCorp | MBT Bancshares vs. Bank of Idaho | MBT Bancshares vs. Citizens Financial Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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