Correlation Between Samsung Electronics and Yamaha
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Yamaha 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 Yamaha 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 Yamaha Motor Co, you can compare the effects of market volatilities on Samsung Electronics and Yamaha 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 Yamaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Yamaha.
Diversification Opportunities for Samsung Electronics and Yamaha
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Yamaha is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Yamaha Motor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamaha Motor 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 Yamaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamaha Motor has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Yamaha go up and down completely randomly.
Pair Corralation between Samsung Electronics and Yamaha
Assuming the 90 days horizon Samsung Electronics Co is expected to under-perform the Yamaha. In addition to that, Samsung Electronics is 1.69 times more volatile than Yamaha Motor Co. It trades about -0.01 of its total potential returns per unit of risk. Yamaha Motor Co is currently generating about 0.12 per unit of volatility. If you would invest 774.00 in Yamaha Motor Co on August 24, 2024 and sell it today you would earn a total of 35.00 from holding Yamaha Motor Co or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Yamaha Motor Co
Performance |
| Timeline |
| Samsung Electronics |
| Yamaha Motor |
Samsung Electronics and Yamaha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Yamaha
The main advantage of trading using opposite Samsung Electronics and Yamaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Yamaha 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 Yamaha will offset losses from the drop in Yamaha's long position.| Samsung Electronics vs. TRADEDOUBLER AB SK | Samsung Electronics vs. ScanSource | Samsung Electronics vs. Auto Trader Group | Samsung Electronics vs. Vastned Retail NV |
| Yamaha vs. Altair Engineering | Yamaha vs. Pentair plc | Yamaha vs. DELTA AIR LINES | Yamaha vs. Wyndham Hotels Resorts |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |