Correlation Between Samsung Electronics and DIVIDEND GROWTH
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and DIVIDEND GROWTH 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 DIVIDEND GROWTH 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 DIVIDEND GROWTH SPLIT, you can compare the effects of market volatilities on Samsung Electronics and DIVIDEND GROWTH 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 DIVIDEND GROWTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and DIVIDEND GROWTH.
Diversification Opportunities for Samsung Electronics and DIVIDEND GROWTH
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and DIVIDEND is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and DIVIDEND GROWTH SPLIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIVIDEND GROWTH SPLIT 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 DIVIDEND GROWTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIVIDEND GROWTH SPLIT has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and DIVIDEND GROWTH go up and down completely randomly.
Pair Corralation between Samsung Electronics and DIVIDEND GROWTH
Assuming the 90 days horizon Samsung Electronics Co is expected to under-perform the DIVIDEND GROWTH. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.03 times less risky than DIVIDEND GROWTH. The stock trades about -0.08 of its potential returns per unit of risk. The DIVIDEND GROWTH SPLIT is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 440.00 in DIVIDEND GROWTH SPLIT on September 3, 2024 and sell it today you would earn a total of 38.00 from holding DIVIDEND GROWTH SPLIT or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. DIVIDEND GROWTH SPLIT
Performance |
| Timeline |
| Samsung Electronics |
| DIVIDEND GROWTH SPLIT |
Samsung Electronics and DIVIDEND GROWTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and DIVIDEND GROWTH
The main advantage of trading using opposite Samsung Electronics and DIVIDEND GROWTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, DIVIDEND GROWTH 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 DIVIDEND GROWTH will offset losses from the drop in DIVIDEND GROWTH's long position.| Samsung Electronics vs. ARISTOCRAT LEISURE | Samsung Electronics vs. Universal Display | Samsung Electronics vs. PLAYTIKA HOLDING DL 01 | Samsung Electronics vs. TRAVEL LEISURE DL 01 |
| DIVIDEND GROWTH vs. Virtus Investment Partners | DIVIDEND GROWTH vs. Laureate Education | DIVIDEND GROWTH vs. EAT WELL INVESTMENT | DIVIDEND GROWTH vs. Apollo Investment Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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