Correlation Between Samsung Electronics and Prospector Capital
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Prospector Capital 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 Prospector Capital 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 Prospector Capital Corp, you can compare the effects of market volatilities on Samsung Electronics and Prospector Capital 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 Prospector Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Prospector Capital.
Diversification Opportunities for Samsung Electronics and Prospector Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Prospector is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Prospector Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prospector Capital 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 Prospector Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prospector Capital Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Prospector Capital go up and down completely randomly.
Pair Corralation between Samsung Electronics and Prospector Capital
If you would invest (100.00) in Prospector Capital Corp on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Prospector Capital Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Prospector Capital Corp
Performance |
| Timeline |
| Samsung Electronics |
| Prospector Capital Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Samsung Electronics and Prospector Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Prospector Capital
The main advantage of trading using opposite Samsung Electronics and Prospector Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Prospector Capital 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 Prospector Capital will offset losses from the drop in Prospector Capital'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 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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