Correlation Between Samsung Electronics and Mobiv Acquisition
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Mobiv Acquisition 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 Mobiv Acquisition 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 Mobiv Acquisition Corp, you can compare the effects of market volatilities on Samsung Electronics and Mobiv Acquisition 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 Mobiv Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Mobiv Acquisition.
Diversification Opportunities for Samsung Electronics and Mobiv Acquisition
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Mobiv is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Mobiv Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobiv Acquisition Corp 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 Mobiv Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobiv Acquisition Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Mobiv Acquisition go up and down completely randomly.
Pair Corralation between Samsung Electronics and Mobiv Acquisition
Assuming the 90 days horizon Samsung Electronics is expected to generate 4.05 times less return on investment than Mobiv Acquisition. But when comparing it to its historical volatility, Samsung Electronics Co is 4.0 times less risky than Mobiv Acquisition. It trades about 0.09 of its potential returns per unit of risk. Mobiv Acquisition Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,036 in Mobiv Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Mobiv Acquisition Corp or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 24.84% |
| Values | Daily Returns |
Samsung Electronics Co vs. Mobiv Acquisition Corp
Performance |
| Timeline |
| Samsung Electronics |
| Mobiv Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Mobiv Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Mobiv Acquisition
The main advantage of trading using opposite Samsung Electronics and Mobiv Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Mobiv Acquisition 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 Mobiv Acquisition will offset losses from the drop in Mobiv Acquisition's long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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