Correlation Between SSP Group and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both SSP Group and Samsung Electronics 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 SSP Group and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSP Group PLC and Samsung Electronics Co, you can compare the effects of market volatilities on SSP Group and Samsung Electronics 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 SSP Group with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSP Group and Samsung Electronics.
Diversification Opportunities for SSP Group and Samsung Electronics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SSP and Samsung is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SSP Group PLC and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and SSP Group 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 SSP Group PLC are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of SSP Group i.e., SSP Group and Samsung Electronics go up and down completely randomly.
Pair Corralation between SSP Group and Samsung Electronics
Assuming the 90 days trading horizon SSP Group PLC is expected to generate 0.93 times more return on investment than Samsung Electronics. However, SSP Group PLC is 1.08 times less risky than Samsung Electronics. It trades about 0.29 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 16,160 in SSP Group PLC on September 12, 2024 and sell it today you would earn a total of 2,990 from holding SSP Group PLC or generate 18.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SSP Group PLC vs. Samsung Electronics Co
Performance |
| Timeline |
| SSP Group PLC |
| Samsung Electronics |
SSP Group and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSP Group and Samsung Electronics
The main advantage of trading using opposite SSP Group and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSP Group position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| SSP Group vs. Capital Drilling | SSP Group vs. bet at home AG | SSP Group vs. Waste Management | SSP Group vs. Empire Metals Limited |
| Samsung Electronics vs. Norwegian Air Shuttle | Samsung Electronics vs. GreenX Metals | Samsung Electronics vs. AMG Advanced Metallurgical | Samsung Electronics vs. Gaztransport et Technigaz |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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