Correlation Between Samsung Electronics and Mentor Capital
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Mentor Capital 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 Mentor Capital 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 Mentor Capital, you can compare the effects of market volatilities on Samsung Electronics and Mentor Capital 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 Mentor Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Mentor Capital.
Diversification Opportunities for Samsung Electronics and Mentor Capital
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Mentor is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Mentor Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mentor Capital 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 Mentor Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mentor Capital has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Mentor Capital go up and down completely randomly.
Pair Corralation between Samsung Electronics and Mentor Capital
If you would invest 6.00 in Mentor Capital on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Mentor Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Mentor Capital
Performance |
| Timeline |
| Samsung Electronics |
| Mentor Capital |
Samsung Electronics and Mentor Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Mentor Capital
The main advantage of trading using opposite Samsung Electronics and Mentor Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Mentor Capital 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 Mentor Capital will offset losses from the drop in Mentor Capital's long position.| Samsung Electronics vs. Legacy Education | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. NVIDIA | Samsung Electronics vs. Microsoft |
| Mentor Capital vs. SPENN Technology AS | Mentor Capital vs. OFX Group Ltd | Mentor Capital vs. Pinetree Capital | Mentor Capital vs. GreenBank Capital |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |