Correlation Between Samsung Electronics and Delivery Hero
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Delivery Hero 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 Delivery Hero 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 Delivery Hero SE, you can compare the effects of market volatilities on Samsung Electronics and Delivery Hero 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 Delivery Hero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Delivery Hero.
Diversification Opportunities for Samsung Electronics and Delivery Hero
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Delivery is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Delivery Hero SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delivery Hero SE 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 Delivery Hero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delivery Hero SE has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Delivery Hero go up and down completely randomly.
Pair Corralation between Samsung Electronics and Delivery Hero
Assuming the 90 days horizon Samsung Electronics Co is expected to under-perform the Delivery Hero. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 2.14 times less risky than Delivery Hero. The stock trades about -0.03 of its potential returns per unit of risk. The Delivery Hero SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,348 in Delivery Hero SE on August 29, 2024 and sell it today you would earn a total of 432.00 from holding Delivery Hero SE or generate 12.9% 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. Delivery Hero SE
Performance |
| Timeline |
| Samsung Electronics |
| Delivery Hero SE |
Samsung Electronics and Delivery Hero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Delivery Hero
The main advantage of trading using opposite Samsung Electronics and Delivery Hero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Delivery Hero 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 Delivery Hero will offset losses from the drop in Delivery Hero's long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Sony Group | Samsung Electronics vs. Panasonic |
| Delivery Hero vs. American Homes 4 | Delivery Hero vs. Aedas Homes SA | Delivery Hero vs. TIANDE CHEMICAL | Delivery Hero vs. Westlake Chemical |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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