Correlation Between Samsung Electronics and Saturn Oil
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Saturn Oil 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 Saturn Oil 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 Saturn Oil Gas, you can compare the effects of market volatilities on Samsung Electronics and Saturn Oil 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 Saturn Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Saturn Oil.
Diversification Opportunities for Samsung Electronics and Saturn Oil
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Saturn is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Saturn Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saturn Oil Gas 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 Saturn Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saturn Oil Gas has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Saturn Oil go up and down completely randomly.
Pair Corralation between Samsung Electronics and Saturn Oil
If you would invest 4,060 in Samsung Electronics Co on August 28, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Saturn Oil Gas
Performance |
| Timeline |
| Samsung Electronics |
| Saturn Oil Gas |
Samsung Electronics and Saturn Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Saturn Oil
The main advantage of trading using opposite Samsung Electronics and Saturn Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Saturn Oil 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 Saturn Oil will offset losses from the drop in Saturn Oil'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 |
| Saturn Oil vs. Permian Resources | Saturn Oil vs. Devon Energy | Saturn Oil vs. EOG Resources | Saturn Oil vs. Coterra Energy |
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.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |