Correlation Between Samsung Electronics and Track
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Track 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 Track 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 Track Group, you can compare the effects of market volatilities on Samsung Electronics and Track 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 Track. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Track.
Diversification Opportunities for Samsung Electronics and Track
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Track is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Track Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Track 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 Track. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Track Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Track go up and down completely randomly.
Pair Corralation between Samsung Electronics and Track
If you would invest 11.00 in Track Group on August 24, 2024 and sell it today you would earn a total of 5.00 from holding Track Group or generate 45.45% 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. Track Group
Performance |
| Timeline |
| Samsung Electronics |
| Track Group |
Samsung Electronics and Track Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Track
The main advantage of trading using opposite Samsung Electronics and Track positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Track 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 Track will offset losses from the drop in Track'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 |
| Track vs. Spectris plc | Track vs. Sono Tek Corp | Track vs. Genasys | Track vs. Sensata Technologies Holding |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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