Correlation Between Samsung Electronics and Vinci SA
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Vinci SA 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 Vinci SA 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 Vinci SA ADR, you can compare the effects of market volatilities on Samsung Electronics and Vinci SA 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 Vinci SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Vinci SA.
Diversification Opportunities for Samsung Electronics and Vinci SA
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Vinci is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Vinci SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinci SA ADR 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 Vinci SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinci SA ADR has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Vinci SA go up and down completely randomly.
Pair Corralation between Samsung Electronics and Vinci SA
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.05 times more return on investment than Vinci SA. However, Samsung Electronics Co is 20.76 times less risky than Vinci SA. It trades about 0.1 of its potential returns per unit of risk. Vinci SA ADR is currently generating about -0.05 per unit of risk. If you would invest 4,007 in Samsung Electronics Co on September 1, 2024 and sell it today you would earn a total of 53.00 from holding Samsung Electronics Co or generate 1.32% 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. Vinci SA ADR
Performance |
| Timeline |
| Samsung Electronics |
| Vinci SA ADR |
Samsung Electronics and Vinci SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Vinci SA
The main advantage of trading using opposite Samsung Electronics and Vinci SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Vinci SA 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 Vinci SA will offset losses from the drop in Vinci SA'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 |
| Vinci SA vs. Orion Group Holdings | Vinci SA vs. Agrify Corp | Vinci SA vs. Matrix Service Co | Vinci SA vs. MYR Group |
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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