Correlation Between Samsung Electronics and SEDANA MEDICAL
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and SEDANA MEDICAL 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 SEDANA MEDICAL 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 SEDANA MEDICAL AB, you can compare the effects of market volatilities on Samsung Electronics and SEDANA MEDICAL 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 SEDANA MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and SEDANA MEDICAL.
Diversification Opportunities for Samsung Electronics and SEDANA MEDICAL
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and SEDANA is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and SEDANA MEDICAL AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEDANA MEDICAL AB 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 SEDANA MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEDANA MEDICAL AB has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and SEDANA MEDICAL go up and down completely randomly.
Pair Corralation between Samsung Electronics and SEDANA MEDICAL
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.41 times more return on investment than SEDANA MEDICAL. However, Samsung Electronics Co is 2.46 times less risky than SEDANA MEDICAL. It trades about -0.01 of its potential returns per unit of risk. SEDANA MEDICAL AB is currently generating about -0.01 per unit of risk. If you would invest 107,864 in Samsung Electronics Co on September 3, 2024 and sell it today you would lose (15,864) from holding Samsung Electronics Co or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. SEDANA MEDICAL AB
Performance |
| Timeline |
| Samsung Electronics |
| SEDANA MEDICAL AB |
Samsung Electronics and SEDANA MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and SEDANA MEDICAL
The main advantage of trading using opposite Samsung Electronics and SEDANA MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, SEDANA MEDICAL 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 SEDANA MEDICAL will offset losses from the drop in SEDANA MEDICAL'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 |
| SEDANA MEDICAL vs. Universal Insurance Holdings | SEDANA MEDICAL vs. BANKINTER ADR 2007 | SEDANA MEDICAL vs. Aozora Bank | SEDANA MEDICAL vs. REVO INSURANCE SPA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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