Correlation Between Samsung Electronics and Torex Gold
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Torex Gold 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 Torex Gold 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 Torex Gold Resources, you can compare the effects of market volatilities on Samsung Electronics and Torex Gold 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 Torex Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Torex Gold.
Diversification Opportunities for Samsung Electronics and Torex Gold
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Torex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Torex Gold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Torex Gold Resources 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 Torex Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Torex Gold Resources has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Torex Gold go up and down completely randomly.
Pair Corralation between Samsung Electronics and Torex Gold
If you would invest 4,060 in Samsung Electronics Co on August 30, 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 Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samsung Electronics Co vs. Torex Gold Resources
Performance |
| Timeline |
| Samsung Electronics |
| Torex Gold Resources |
Samsung Electronics and Torex Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Torex Gold
The main advantage of trading using opposite Samsung Electronics and Torex Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Torex Gold 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 Torex Gold will offset losses from the drop in Torex Gold'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 |
| Torex Gold vs. Mink Therapeutics | Torex Gold vs. Tscan Therapeutics | Torex Gold vs. Acumen Pharmaceuticals | Torex Gold vs. Nuvalent |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |