Correlation Between Samsung Electronics and Social Leverage
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Social Leverage 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 Social Leverage 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 Social Leverage Acquisition, you can compare the effects of market volatilities on Samsung Electronics and Social Leverage 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 Social Leverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Social Leverage.
Diversification Opportunities for Samsung Electronics and Social Leverage
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Social is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Social Leverage Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Social Leverage Acqu 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 Social Leverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Social Leverage Acqu has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Social Leverage go up and down completely randomly.
Pair Corralation between Samsung Electronics and Social Leverage
If you would invest 4,007 in Samsung Electronics Co on September 1, 2024 and sell it today you would earn a total of 53.00 from holding Samsung Electronics Co or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Samsung Electronics Co vs. Social Leverage Acquisition
Performance |
| Timeline |
| Samsung Electronics |
| Social Leverage Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Social Leverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Social Leverage
The main advantage of trading using opposite Samsung Electronics and Social Leverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Social Leverage 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 Social Leverage will offset losses from the drop in Social Leverage'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 |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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