Correlation Between Samsung Electronics and KEYCORP
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and KEYCORP 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 KEYCORP 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 KEYCORP, you can compare the effects of market volatilities on Samsung Electronics and KEYCORP 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 KEYCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and KEYCORP.
Diversification Opportunities for Samsung Electronics and KEYCORP
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and KEYCORP is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and KEYCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYCORP 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 KEYCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYCORP has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and KEYCORP go up and down completely randomly.
Pair Corralation between Samsung Electronics and KEYCORP
Assuming the 90 days horizon Samsung Electronics is expected to generate 5.29 times less return on investment than KEYCORP. In addition to that, Samsung Electronics is 1.32 times more volatile than KEYCORP. It trades about 0.04 of its total potential returns per unit of risk. KEYCORP is currently generating about 0.3 per unit of volatility. If you would invest 1,628 in KEYCORP on October 23, 2024 and sell it today you would earn a total of 130.00 from holding KEYCORP or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. KEYCORP
Performance |
| Timeline |
| Samsung Electronics |
| KEYCORP |
Samsung Electronics and KEYCORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and KEYCORP
The main advantage of trading using opposite Samsung Electronics and KEYCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, KEYCORP 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 KEYCORP will offset losses from the drop in KEYCORP's long position.| Samsung Electronics vs. Altair Engineering | Samsung Electronics vs. WIZZ AIR HLDGUNSPADR4 | Samsung Electronics vs. FAIR ISAAC | Samsung Electronics vs. Infrastrutture Wireless Italiane |
| KEYCORP vs. ASM Pacific Technology | KEYCORP vs. UNIQA INSURANCE GR | KEYCORP vs. SMA Solar Technology | KEYCORP vs. DXC Technology Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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