Correlation Between Samsung Electronics and Orca Energy
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Orca Energy 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 Orca Energy 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 Orca Energy Group, you can compare the effects of market volatilities on Samsung Electronics and Orca Energy 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 Orca Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Orca Energy.
Diversification Opportunities for Samsung Electronics and Orca Energy
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Orca is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Orca Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orca Energy Group 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 Orca Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orca Energy Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Orca Energy go up and down completely randomly.
Pair Corralation between Samsung Electronics and Orca Energy
If you would invest 225.00 in Orca Energy Group on November 27, 2024 and sell it today you would lose (2.00) from holding Orca Energy Group or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Samsung Electronics Co vs. Orca Energy Group
Performance |
| Timeline |
| Samsung Electronics |
| Orca Energy Group |
Samsung Electronics and Orca Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Orca Energy
The main advantage of trading using opposite Samsung Electronics and Orca Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Orca Energy 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 Orca Energy will offset losses from the drop in Orca Energy's long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp | Samsung Electronics vs. TCL Electronics Holdings |
| Orca Energy vs. PetroShale | Orca Energy vs. Questerre Energy | Orca Energy vs. Petrus Resources | Orca Energy vs. Inpex Corp ADR |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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