Correlation Between Samsung Electronics and ZhongAn Online
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and ZhongAn Online 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 ZhongAn Online 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 ZhongAn Online P, you can compare the effects of market volatilities on Samsung Electronics and ZhongAn Online 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 ZhongAn Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and ZhongAn Online.
Diversification Opportunities for Samsung Electronics and ZhongAn Online
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and ZhongAn is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and ZhongAn Online P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZhongAn Online P 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 ZhongAn Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZhongAn Online P has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and ZhongAn Online go up and down completely randomly.
Pair Corralation between Samsung Electronics and ZhongAn Online
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.55 times more return on investment than ZhongAn Online. However, Samsung Electronics Co is 1.82 times less risky than ZhongAn Online. It trades about 0.0 of its potential returns per unit of risk. ZhongAn Online P is currently generating about -0.01 per unit of risk. If you would invest 101,890 in Samsung Electronics Co on September 14, 2024 and sell it today you would lose (8,490) from holding Samsung Electronics Co or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. ZhongAn Online P
Performance |
| Timeline |
| Samsung Electronics |
| ZhongAn Online P |
Samsung Electronics and ZhongAn Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and ZhongAn Online
The main advantage of trading using opposite Samsung Electronics and ZhongAn Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, ZhongAn Online 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 ZhongAn Online will offset losses from the drop in ZhongAn Online's long position.| Samsung Electronics vs. UPDATE SOFTWARE | Samsung Electronics vs. GRIFFIN MINING LTD | Samsung Electronics vs. PSI Software AG | Samsung Electronics vs. MAGIC SOFTWARE ENTR |
| ZhongAn Online vs. TFS FINANCIAL | ZhongAn Online vs. WIMFARM SA EO | ZhongAn Online vs. Hitachi Construction Machinery | ZhongAn Online vs. TITAN MACHINERY |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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