Correlation Between Samsung Electronics and Total Gabon
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Total Gabon 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 Total Gabon 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 Total Gabon, you can compare the effects of market volatilities on Samsung Electronics and Total Gabon 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 Total Gabon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Total Gabon.
Diversification Opportunities for Samsung Electronics and Total Gabon
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Samsung and Total is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Total Gabon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Gabon 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 Total Gabon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Gabon has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Total Gabon go up and down completely randomly.
Pair Corralation between Samsung Electronics and Total Gabon
Assuming the 90 days horizon Samsung Electronics is expected to generate 1.04 times less return on investment than Total Gabon. In addition to that, Samsung Electronics is 1.15 times more volatile than Total Gabon. It trades about 0.15 of its total potential returns per unit of risk. Total Gabon is currently generating about 0.18 per unit of volatility. If you would invest 16,200 in Total Gabon on December 3, 2024 and sell it today you would earn a total of 1,050 from holding Total Gabon or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Total Gabon
Performance |
| Timeline |
| Samsung Electronics |
| Total Gabon |
Samsung Electronics and Total Gabon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Total Gabon
The main advantage of trading using opposite Samsung Electronics and Total Gabon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Total Gabon 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 Total Gabon will offset losses from the drop in Total Gabon's long position.| Samsung Electronics vs. Hemisphere Energy Corp | Samsung Electronics vs. TELECOM ITALRISP ADR10 | Samsung Electronics vs. Rocket Internet SE | Samsung Electronics vs. RYU Apparel |
| Total Gabon vs. SALESFORCE INC CDR | Total Gabon vs. CITY OFFICE REIT | Total Gabon vs. ZhongAn Online P | Total Gabon vs. Hisense Home Appliances |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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