Correlation Between Samsung Electronics and Precipitate Gold
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Precipitate Gold 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 Precipitate Gold 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 Precipitate Gold Corp, you can compare the effects of market volatilities on Samsung Electronics and Precipitate Gold 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 Precipitate Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Precipitate Gold.
Diversification Opportunities for Samsung Electronics and Precipitate Gold
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Precipitate is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Precipitate Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precipitate Gold 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 Precipitate Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precipitate Gold Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Precipitate Gold go up and down completely randomly.
Pair Corralation between Samsung Electronics and Precipitate Gold
If you would invest 4.71 in Precipitate Gold Corp on August 28, 2024 and sell it today you would earn a total of 0.09 from holding Precipitate Gold Corp or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Precipitate Gold Corp
Performance |
| Timeline |
| Samsung Electronics |
| Precipitate Gold Corp |
Samsung Electronics and Precipitate Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Precipitate Gold
The main advantage of trading using opposite Samsung Electronics and Precipitate Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Precipitate Gold 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 Precipitate Gold will offset losses from the drop in Precipitate Gold'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 |
| Precipitate Gold vs. Ascendant Resources | Precipitate Gold vs. Cantex Mine Development | Precipitate Gold vs. Amarc Resources | Precipitate Gold vs. Sterling Metals 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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