Correlation Between Samsung Electronics and Yanzhou Coal
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Yanzhou Coal 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 Yanzhou Coal 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 Yanzhou Coal Mining, you can compare the effects of market volatilities on Samsung Electronics and Yanzhou Coal 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 Yanzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Yanzhou Coal.
Diversification Opportunities for Samsung Electronics and Yanzhou Coal
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Yanzhou is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Yanzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanzhou Coal Mining 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 Yanzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanzhou Coal Mining has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Yanzhou Coal go up and down completely randomly.
Pair Corralation between Samsung Electronics and Yanzhou Coal
If you would invest 4,060 in Samsung Electronics Co on November 29, 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 Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Samsung Electronics Co vs. Yanzhou Coal Mining
Performance |
| Timeline |
| Samsung Electronics |
| Yanzhou Coal Mining |
Samsung Electronics and Yanzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Yanzhou Coal
The main advantage of trading using opposite Samsung Electronics and Yanzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Yanzhou Coal 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 Yanzhou Coal will offset losses from the drop in Yanzhou Coal's long position.| Samsung Electronics vs. Pfizer Inc | Samsung Electronics vs. American Express | Samsung Electronics vs. Alcoa Corp | Samsung Electronics vs. Cisco Systems |
| Yanzhou Coal vs. Geo Energy Resources | Yanzhou Coal vs. Indo Tambangraya Megah | Yanzhou Coal vs. Bukit Asam Tbk | Yanzhou Coal vs. Thungela Resources Limited |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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