Correlation Between Samsung Electronics and Tri Continental
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Tri Continental 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 Tri Continental 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 Tri Continental PFD, you can compare the effects of market volatilities on Samsung Electronics and Tri Continental 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 Tri Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Tri Continental.
Diversification Opportunities for Samsung Electronics and Tri Continental
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Tri is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Tri Continental PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tri Continental PFD 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 Tri Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tri Continental PFD has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Tri Continental go up and down completely randomly.
Pair Corralation between Samsung Electronics and Tri Continental
Assuming the 90 days horizon Samsung Electronics is expected to generate 1.98 times less return on investment than Tri Continental. But when comparing it to its historical volatility, Samsung Electronics Co is 9.49 times less risky than Tri Continental. It trades about 0.13 of its potential returns per unit of risk. Tri Continental PFD is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,421 in Tri Continental PFD on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Tri Continental PFD or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Tri Continental PFD
Performance |
| Timeline |
| Samsung Electronics |
| Tri Continental PFD |
Samsung Electronics and Tri Continental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Tri Continental
The main advantage of trading using opposite Samsung Electronics and Tri Continental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Tri Continental 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 Tri Continental will offset losses from the drop in Tri Continental'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 |
| Tri Continental vs. The Gabelli Multimedia | Tri Continental vs. The Gabelli Equity | Tri Continental vs. Virtus AllianzGI Convertible | Tri Continental vs. John Hancock Income |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |