Correlation Between Samsung Electronics and Takkt AG
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Takkt AG 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 Takkt AG 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 Takkt AG, you can compare the effects of market volatilities on Samsung Electronics and Takkt AG 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 Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Takkt AG.
Diversification Opportunities for Samsung Electronics and Takkt AG
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Takkt is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG 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 Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Takkt AG go up and down completely randomly.
Pair Corralation between Samsung Electronics and Takkt AG
Assuming the 90 days horizon Samsung Electronics is expected to generate 4.83 times less return on investment than Takkt AG. But when comparing it to its historical volatility, Samsung Electronics Co is 1.14 times less risky than Takkt AG. It trades about 0.03 of its potential returns per unit of risk. Takkt AG is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 764.00 in Takkt AG on November 2, 2024 and sell it today you would earn a total of 49.00 from holding Takkt AG or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Samsung Electronics Co vs. Takkt AG
Performance |
| Timeline |
| Samsung Electronics |
| Takkt AG |
Samsung Electronics and Takkt AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Takkt AG
The main advantage of trading using opposite Samsung Electronics and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Takkt AG 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 Takkt AG will offset losses from the drop in Takkt AG's long position.| Samsung Electronics vs. Hisense Home Appliances | Samsung Electronics vs. Haverty Furniture Companies | Samsung Electronics vs. CITY OFFICE REIT | Samsung Electronics vs. Haier Smart Home |
| Takkt AG vs. FUJIFILM Holdings | Takkt AG vs. Takkt AG | Takkt AG vs. Superior Plus Corp | Takkt AG vs. Intel |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |