Correlation Between Samsung Electronics and Spanish Mountain
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Spanish Mountain 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 Spanish Mountain 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 Spanish Mountain Gold, you can compare the effects of market volatilities on Samsung Electronics and Spanish Mountain 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 Spanish Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Spanish Mountain.
Diversification Opportunities for Samsung Electronics and Spanish Mountain
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Spanish is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Spanish Mountain Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spanish Mountain Gold 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 Spanish Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spanish Mountain Gold has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Spanish Mountain go up and down completely randomly.
Pair Corralation between Samsung Electronics and Spanish Mountain
If you would invest 4,060 in Samsung Electronics Co on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Samsung Electronics Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Spanish Mountain Gold
Performance |
| Timeline |
| Samsung Electronics |
| Spanish Mountain Gold |
Samsung Electronics and Spanish Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Spanish Mountain
The main advantage of trading using opposite Samsung Electronics and Spanish Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Spanish Mountain 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 Spanish Mountain will offset losses from the drop in Spanish Mountain's long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Amazon Inc | Samsung Electronics vs. Alphabet Inc Class C |
| Spanish Mountain vs. Argo Gold | Spanish Mountain vs. Advance Gold Corp | Spanish Mountain vs. Angkor Resources Corp | Spanish Mountain vs. Minnova 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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