Correlation Between Samsung Electronics and Nippon Sheet
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Nippon Sheet 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 Nippon Sheet 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 Nippon Sheet Glass, you can compare the effects of market volatilities on Samsung Electronics and Nippon Sheet 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 Nippon Sheet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Nippon Sheet.
Diversification Opportunities for Samsung Electronics and Nippon Sheet
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Nippon is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Nippon Sheet Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nippon Sheet Glass 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 Nippon Sheet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nippon Sheet Glass has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Nippon Sheet go up and down completely randomly.
Pair Corralation between Samsung Electronics and Nippon Sheet
If you would invest 4,060 in Samsung Electronics Co on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Samsung Electronics Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Nippon Sheet Glass
Performance |
| Timeline |
| Samsung Electronics |
| Nippon Sheet Glass |
Samsung Electronics and Nippon Sheet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Nippon Sheet
The main advantage of trading using opposite Samsung Electronics and Nippon Sheet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Nippon Sheet 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 Nippon Sheet will offset losses from the drop in Nippon Sheet's long position.| Samsung Electronics vs. Copa Holdings SA | Samsung Electronics vs. United Airlines Holdings | Samsung Electronics vs. Delta Air Lines | Samsung Electronics vs. SkyWest |
| Nippon Sheet vs. Allison Transmission Holdings | Nippon Sheet vs. Luminar Technologies | Nippon Sheet vs. Lear Corporation | Nippon Sheet vs. BorgWarner |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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