Correlation Between Samsung Electronics and SUNCOKE ENERGY
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and SUNCOKE ENERGY 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 SUNCOKE ENERGY 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 SUNCOKE ENERGY, you can compare the effects of market volatilities on Samsung Electronics and SUNCOKE ENERGY 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 SUNCOKE ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and SUNCOKE ENERGY.
Diversification Opportunities for Samsung Electronics and SUNCOKE ENERGY
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and SUNCOKE is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and SUNCOKE ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNCOKE ENERGY 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 SUNCOKE ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNCOKE ENERGY has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and SUNCOKE ENERGY go up and down completely randomly.
Pair Corralation between Samsung Electronics and SUNCOKE ENERGY
Assuming the 90 days horizon Samsung Electronics Co is expected to under-perform the SUNCOKE ENERGY. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.26 times less risky than SUNCOKE ENERGY. The stock trades about -0.05 of its potential returns per unit of risk. The SUNCOKE ENERGY is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 855.00 in SUNCOKE ENERGY on September 12, 2024 and sell it today you would earn a total of 305.00 from holding SUNCOKE ENERGY or generate 35.67% 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. SUNCOKE ENERGY
Performance |
| Timeline |
| Samsung Electronics |
| SUNCOKE ENERGY |
Samsung Electronics and SUNCOKE ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and SUNCOKE ENERGY
The main advantage of trading using opposite Samsung Electronics and SUNCOKE ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, SUNCOKE ENERGY 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 SUNCOKE ENERGY will offset losses from the drop in SUNCOKE ENERGY's long position.| Samsung Electronics vs. Align Technology | Samsung Electronics vs. Vishay Intertechnology | Samsung Electronics vs. Sunny Optical Technology | Samsung Electronics vs. Nufarm Limited |
| SUNCOKE ENERGY vs. Lion One Metals | SUNCOKE ENERGY vs. Aluminum of | SUNCOKE ENERGY vs. ULTRA CLEAN HLDGS | SUNCOKE ENERGY vs. GUARDANT HEALTH CL |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |