Correlation Between Samsung Electronics and Medigus
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Medigus 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 Medigus 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 Medigus Ltd ADR, you can compare the effects of market volatilities on Samsung Electronics and Medigus 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 Medigus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Medigus.
Diversification Opportunities for Samsung Electronics and Medigus
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Medigus is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Medigus Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medigus Ltd ADR 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 Medigus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medigus Ltd ADR has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Medigus go up and down completely randomly.
Pair Corralation between Samsung Electronics and Medigus
If you would invest 173.00 in Medigus Ltd ADR on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Medigus Ltd ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Samsung Electronics Co vs. Medigus Ltd ADR
Performance |
| Timeline |
| Samsung Electronics |
| Medigus Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Medigus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Medigus
The main advantage of trading using opposite Samsung Electronics and Medigus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Medigus 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 Medigus will offset losses from the drop in Medigus' long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
| Medigus vs. Brainsway | Medigus vs. Delcath Systems | Medigus vs. Paragon 28 | Medigus vs. Nexalin Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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