Correlation Between Samsung Electronics and Total Helium
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Total Helium 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 Total Helium 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 Total Helium, you can compare the effects of market volatilities on Samsung Electronics and Total Helium 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 Total Helium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Total Helium.
Diversification Opportunities for Samsung Electronics and Total Helium
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Total is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Total Helium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Helium 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 Total Helium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Helium has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Total Helium go up and down completely randomly.
Pair Corralation between Samsung Electronics and Total Helium
Assuming the 90 days horizon Samsung Electronics is expected to generate 44.09 times less return on investment than Total Helium. But when comparing it to its historical volatility, Samsung Electronics Co is 224.61 times less risky than Total Helium. It trades about 0.1 of its potential returns per unit of risk. Total Helium is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Total Helium on August 29, 2024 and sell it today you would lose (26.80) from holding Total Helium or give up 95.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Total Helium
Performance |
| Timeline |
| Samsung Electronics |
| Total Helium |
Samsung Electronics and Total Helium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Total Helium
The main advantage of trading using opposite Samsung Electronics and Total Helium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Total Helium 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 Total Helium will offset losses from the drop in Total Helium's long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Alphabet Inc Class C | Samsung Electronics vs. Meta Platforms |
| Total Helium vs. Royal Helium | Total Helium vs. Blue Star Helium | Total Helium vs. Avanti Energy | Total Helium vs. Arrow Exploration 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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