Correlation Between Samsung Electronics and Starguide
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Starguide 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 Starguide 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 Starguide Group, you can compare the effects of market volatilities on Samsung Electronics and Starguide 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 Starguide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Starguide.
Diversification Opportunities for Samsung Electronics and Starguide
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Starguide is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Starguide Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starguide Group 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 Starguide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starguide Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Starguide go up and down completely randomly.
Pair Corralation between Samsung Electronics and Starguide
Assuming the 90 days horizon Samsung Electronics is expected to generate 446.1 times less return on investment than Starguide. But when comparing it to its historical volatility, Samsung Electronics Co is 616.91 times less risky than Starguide. It trades about 0.1 of its potential returns per unit of risk. Starguide Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Starguide Group on September 3, 2024 and sell it today you would lose (390.00) from holding Starguide Group or give up 97.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Samsung Electronics Co vs. Starguide Group
Performance |
| Timeline |
| Samsung Electronics |
| Starguide Group |
Samsung Electronics and Starguide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Starguide
The main advantage of trading using opposite Samsung Electronics and Starguide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Starguide 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 Starguide will offset losses from the drop in Starguide's long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Amazon Inc | Samsung Electronics vs. Alphabet Inc Class C |
| Starguide vs. Manaris Corp | Starguide vs. Green Planet Bio | Starguide vs. Continental Beverage Brands | Starguide vs. Opus Magnum Ameris |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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