Correlation Between Samsung Electronics and Minor International
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Minor International 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 Minor International 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 Minor International Public, you can compare the effects of market volatilities on Samsung Electronics and Minor International 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 Minor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Minor International.
Diversification Opportunities for Samsung Electronics and Minor International
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Minor is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Minor International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minor International 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 Minor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minor International has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Minor International go up and down completely randomly.
Pair Corralation between Samsung Electronics and Minor International
If you would invest 4,033 in Samsung Electronics Co on November 2, 2024 and sell it today you would earn a total of 27.00 from holding Samsung Electronics Co or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 97.17% |
| Values | Daily Returns |
Samsung Electronics Co vs. Minor International Public
Performance |
| Timeline |
| Samsung Electronics |
| Minor International |
Samsung Electronics and Minor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Minor International
The main advantage of trading using opposite Samsung Electronics and Minor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Minor International 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 Minor International will offset losses from the drop in Minor International's long position.| Samsung Electronics vs. ProSiebenSat1 Media AG | Samsung Electronics vs. RTL Group SA | Samsung Electronics vs. iHeartMedia | Samsung Electronics vs. ITV PLC ADR |
| Minor International vs. Altria Group | Minor International vs. Ispire Technology Common | Minor International vs. Compania Cervecerias Unidas | Minor International vs. Southern Home Medicl |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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