Correlation Between Samsung Electronics and Uwharrie Capital
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Uwharrie Capital 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 Uwharrie Capital 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 Uwharrie Capital Corp, you can compare the effects of market volatilities on Samsung Electronics and Uwharrie Capital 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 Uwharrie Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Uwharrie Capital.
Diversification Opportunities for Samsung Electronics and Uwharrie Capital
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Uwharrie is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Uwharrie Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uwharrie Capital 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 Uwharrie Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uwharrie Capital Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Uwharrie Capital go up and down completely randomly.
Pair Corralation between Samsung Electronics and Uwharrie Capital
If you would invest 4,060 in Samsung Electronics Co on September 1, 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 | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Uwharrie Capital Corp
Performance |
| Timeline |
| Samsung Electronics |
| Uwharrie Capital Corp |
Samsung Electronics and Uwharrie Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Uwharrie Capital
The main advantage of trading using opposite Samsung Electronics and Uwharrie Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Uwharrie Capital 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 Uwharrie Capital will offset losses from the drop in Uwharrie Capital'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 |
| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie Bancorp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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