Correlation Between Samsung Electronics and CCL Industries
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and CCL Industries 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 CCL Industries 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 CCL Industries, you can compare the effects of market volatilities on Samsung Electronics and CCL Industries 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 CCL Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and CCL Industries.
Diversification Opportunities for Samsung Electronics and CCL Industries
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and CCL is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and CCL Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCL Industries 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 CCL Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCL Industries has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and CCL Industries go up and down completely randomly.
Pair Corralation between Samsung Electronics and CCL Industries
Assuming the 90 days horizon Samsung Electronics Co is expected to under-perform the CCL Industries. In addition to that, Samsung Electronics is 1.29 times more volatile than CCL Industries. It trades about -0.01 of its total potential returns per unit of risk. CCL Industries is currently generating about 0.04 per unit of volatility. If you would invest 4,236 in CCL Industries on September 1, 2024 and sell it today you would earn a total of 964.00 from holding CCL Industries or generate 22.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Samsung Electronics Co vs. CCL Industries
Performance |
| Timeline |
| Samsung Electronics |
| CCL Industries |
Samsung Electronics and CCL Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and CCL Industries
The main advantage of trading using opposite Samsung Electronics and CCL Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, CCL Industries 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 CCL Industries will offset losses from the drop in CCL Industries' long position.| Samsung Electronics vs. QINGCI GAMES INC | Samsung Electronics vs. GAMESTOP | Samsung Electronics vs. CI GAMES SA | Samsung Electronics vs. Tencent Music Entertainment |
| CCL Industries vs. SEALED AIR | CCL Industries vs. Ryanair Holdings plc | CCL Industries vs. LION ONE METALS | CCL Industries vs. Western Copper and |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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