Correlation Between Samsung Electronics and Impala Platinum
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Impala Platinum 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 Impala Platinum 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 Impala Platinum Holdings, you can compare the effects of market volatilities on Samsung Electronics and Impala Platinum 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 Impala Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Impala Platinum.
Diversification Opportunities for Samsung Electronics and Impala Platinum
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Samsung and Impala is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Impala Platinum Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impala Platinum Holdings 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 Impala Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impala Platinum Holdings has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Impala Platinum go up and down completely randomly.
Pair Corralation between Samsung Electronics and Impala Platinum
Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.91 times more return on investment than Impala Platinum. However, Samsung Electronics Co is 1.1 times less risky than Impala Platinum. It trades about 0.13 of its potential returns per unit of risk. Impala Platinum Holdings is currently generating about -0.06 per unit of risk. If you would invest 87,600 in Samsung Electronics Co on December 1, 2024 and sell it today you would earn a total of 5,000 from holding Samsung Electronics Co or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samsung Electronics Co vs. Impala Platinum Holdings
Performance |
| Timeline |
| Samsung Electronics |
| Impala Platinum Holdings |
Samsung Electronics and Impala Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Impala Platinum
The main advantage of trading using opposite Samsung Electronics and Impala Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Impala Platinum 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 Impala Platinum will offset losses from the drop in Impala Platinum's long position.| Samsung Electronics vs. FIREWEED METALS P | Samsung Electronics vs. Motorcar Parts of | Samsung Electronics vs. GOLDQUEST MINING | Samsung Electronics vs. DISTRICT METALS |
| Impala Platinum vs. BOS BETTER ONLINE | Impala Platinum vs. Renesas Electronics | Impala Platinum vs. SALESFORCE INC CDR | Impala Platinum vs. YATRA ONLINE DL 0001 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |