Correlation Between Samsung Electronics and Teck Resources
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Teck Resources 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 Teck Resources 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 Teck Resources Ltd, you can compare the effects of market volatilities on Samsung Electronics and Teck Resources 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 Teck Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Teck Resources.
Diversification Opportunities for Samsung Electronics and Teck Resources
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Teck is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Teck Resources Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teck Resources 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 Teck Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teck Resources has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Teck Resources go up and down completely randomly.
Pair Corralation between Samsung Electronics and Teck Resources
Assuming the 90 days horizon Samsung Electronics Co is expected to under-perform the Teck Resources. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.34 times less risky than Teck Resources. The stock trades about 0.0 of its potential returns per unit of risk. The Teck Resources Ltd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,301 in Teck Resources Ltd on September 2, 2024 and sell it today you would earn a total of 1,131 from holding Teck Resources Ltd or generate 34.26% 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. Teck Resources Ltd
Performance |
| Timeline |
| Samsung Electronics |
| Teck Resources |
Samsung Electronics and Teck Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Teck Resources
The main advantage of trading using opposite Samsung Electronics and Teck Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Teck Resources 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 Teck Resources will offset losses from the drop in Teck Resources' long position.| Samsung Electronics vs. SLR Investment Corp | Samsung Electronics vs. APPLIED MATERIALS | Samsung Electronics vs. Mitsubishi Materials | Samsung Electronics vs. REGAL ASIAN INVESTMENTS |
| Teck Resources vs. BHP Group Limited | Teck Resources vs. Rio Tinto Group | Teck Resources vs. Vale SA | Teck Resources vs. Vale SA |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| 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 Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |