Correlation Between Samsung Electronics and Sizzle Acquisition
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Sizzle Acquisition 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 Sizzle Acquisition 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 Sizzle Acquisition Corp, you can compare the effects of market volatilities on Samsung Electronics and Sizzle Acquisition 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 Sizzle Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Sizzle Acquisition.
Diversification Opportunities for Samsung Electronics and Sizzle Acquisition
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and Sizzle is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Sizzle Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sizzle Acquisition 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 Sizzle Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sizzle Acquisition Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Sizzle Acquisition go up and down completely randomly.
Pair Corralation between Samsung Electronics and Sizzle Acquisition
Assuming the 90 days horizon Samsung Electronics is expected to generate 12.25 times less return on investment than Sizzle Acquisition. But when comparing it to its historical volatility, Samsung Electronics Co is 5.52 times less risky than Sizzle Acquisition. It trades about 0.11 of its potential returns per unit of risk. Sizzle Acquisition Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,079 in Sizzle Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Sizzle Acquisition Corp or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 1.14% |
| Values | Daily Returns |
Samsung Electronics Co vs. Sizzle Acquisition Corp
Performance |
| Timeline |
| Samsung Electronics |
| Sizzle Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Sizzle Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Sizzle Acquisition
The main advantage of trading using opposite Samsung Electronics and Sizzle Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Sizzle Acquisition 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 Sizzle Acquisition will offset losses from the drop in Sizzle Acquisition's long position.| Samsung Electronics vs. Copa Holdings SA | Samsung Electronics vs. United Airlines Holdings | Samsung Electronics vs. Delta Air Lines | Samsung Electronics vs. SkyWest |
| Sizzle Acquisition vs. Battery Future Acquisition | Sizzle Acquisition vs. KAT Exploration | Sizzle Acquisition vs. Aqua Power Systems | Sizzle Acquisition vs. Metal Sky Star |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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