Correlation Between Samsung Electronics and Mason Industrial
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Mason Industrial 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 Mason Industrial 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 Mason Industrial Technology, you can compare the effects of market volatilities on Samsung Electronics and Mason Industrial 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 Mason Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Mason Industrial.
Diversification Opportunities for Samsung Electronics and Mason Industrial
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Mason is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Mason Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Industrial Tec 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 Mason Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Industrial Tec has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Mason Industrial go up and down completely randomly.
Pair Corralation between Samsung Electronics and Mason Industrial
If you would invest 1,014 in Mason Industrial Technology on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Mason Industrial Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Mason Industrial Technology
Performance |
| Timeline |
| Samsung Electronics |
| Mason Industrial Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Mason Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Mason Industrial
The main advantage of trading using opposite Samsung Electronics and Mason Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Mason Industrial 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 Mason Industrial will offset losses from the drop in Mason Industrial's long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Amazon Inc | Samsung Electronics vs. Alphabet Inc Class C |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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