Correlation Between Samsung Electronics and PT Jasa
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and PT Jasa 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 PT Jasa 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 PT Jasa Marga, you can compare the effects of market volatilities on Samsung Electronics and PT Jasa 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 PT Jasa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and PT Jasa.
Diversification Opportunities for Samsung Electronics and PT Jasa
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and 0JM is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and PT Jasa Marga in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Jasa Marga 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 PT Jasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Jasa Marga has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and PT Jasa go up and down completely randomly.
Pair Corralation between Samsung Electronics and PT Jasa
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.23 times more return on investment than PT Jasa. However, Samsung Electronics is 1.23 times more volatile than PT Jasa Marga. It trades about 0.02 of its potential returns per unit of risk. PT Jasa Marga is currently generating about 0.01 per unit of risk. If you would invest 96,600 in Samsung Electronics Co on August 27, 2024 and sell it today you would earn a total of 400.00 from holding Samsung Electronics Co or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. PT Jasa Marga
Performance |
| Timeline |
| Samsung Electronics |
| PT Jasa Marga |
Samsung Electronics and PT Jasa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and PT Jasa
The main advantage of trading using opposite Samsung Electronics and PT Jasa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, PT Jasa 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 PT Jasa will offset losses from the drop in PT Jasa's long position.| Samsung Electronics vs. COSMOSTEEL HLDGS | Samsung Electronics vs. Geratherm Medical AG | Samsung Electronics vs. Khiron Life Sciences | Samsung Electronics vs. Advanced Medical Solutions |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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