Correlation Between Samsung Electronics and HomeToGo
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and HomeToGo 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 HomeToGo 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 HomeToGo SE, you can compare the effects of market volatilities on Samsung Electronics and HomeToGo 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 HomeToGo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and HomeToGo.
Diversification Opportunities for Samsung Electronics and HomeToGo
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and HomeToGo is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and HomeToGo SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomeToGo 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 HomeToGo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomeToGo SE has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and HomeToGo go up and down completely randomly.
Pair Corralation between Samsung Electronics and HomeToGo
Assuming the 90 days horizon Samsung Electronics is expected to generate 38.57 times less return on investment than HomeToGo. But when comparing it to its historical volatility, Samsung Electronics Co is 1.65 times less risky than HomeToGo. It trades about 0.0 of its potential returns per unit of risk. HomeToGo SE is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 230.00 in HomeToGo SE on August 25, 2024 and sell it today you would lose (24.00) from holding HomeToGo SE or give up 10.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Samsung Electronics Co vs. HomeToGo SE
Performance |
| Timeline |
| Samsung Electronics |
| HomeToGo SE |
Samsung Electronics and HomeToGo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and HomeToGo
The main advantage of trading using opposite Samsung Electronics and HomeToGo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, HomeToGo 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 HomeToGo will offset losses from the drop in HomeToGo's long position.| Samsung Electronics vs. KINGBOARD CHEMICAL | Samsung Electronics vs. ScanSource | Samsung Electronics vs. GEAR4MUSIC LS 10 | Samsung Electronics vs. Eastman Chemical |
| HomeToGo vs. ANTA SPORTS PRODUCT | HomeToGo vs. Universal Entertainment | HomeToGo vs. RCS MediaGroup SpA | HomeToGo vs. UNIVERSAL MUSIC GROUP |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |