Correlation Between Samsung Electronics and Smoore International
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Smoore International 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 Smoore International 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 Smoore International Holdings, you can compare the effects of market volatilities on Samsung Electronics and Smoore International 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 Smoore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Smoore International.
Diversification Opportunities for Samsung Electronics and Smoore International
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Samsung and Smoore is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Smoore International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smoore International 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 Smoore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smoore International has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Smoore International go up and down completely randomly.
Pair Corralation between Samsung Electronics and Smoore International
If you would invest 122.00 in Smoore International Holdings on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Smoore International Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 90.48% |
| Values | Daily Returns |
Samsung Electronics Co vs. Smoore International Holdings
Performance |
| Timeline |
| Samsung Electronics |
| Smoore International |
Samsung Electronics and Smoore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Smoore International
The main advantage of trading using opposite Samsung Electronics and Smoore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Smoore International 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 Smoore International will offset losses from the drop in Smoore International's long position.| Samsung Electronics vs. Legacy Education | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. NVIDIA | Samsung Electronics vs. Microsoft |
| Smoore International vs. 22nd Century Group | Smoore International vs. British American Tobacco | Smoore International vs. Philip Morris International |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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