Correlation Between Samsung Electronics and ANSYS
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and ANSYS 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 ANSYS 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 ANSYS Inc, you can compare the effects of market volatilities on Samsung Electronics and ANSYS 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 ANSYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and ANSYS.
Diversification Opportunities for Samsung Electronics and ANSYS
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and ANSYS is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS Inc 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 ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and ANSYS go up and down completely randomly.
Pair Corralation between Samsung Electronics and ANSYS
Assuming the 90 days trading horizon Samsung Electronics is expected to generate 2.2 times less return on investment than ANSYS. In addition to that, Samsung Electronics is 2.08 times more volatile than ANSYS Inc. It trades about 0.05 of its total potential returns per unit of risk. ANSYS Inc is currently generating about 0.22 per unit of volatility. If you would invest 32,390 in ANSYS Inc on October 22, 2024 and sell it today you would earn a total of 970.00 from holding ANSYS Inc or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. ANSYS Inc
Performance |
| Timeline |
| Samsung Electronics |
| ANSYS Inc |
Samsung Electronics and ANSYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and ANSYS
The main advantage of trading using opposite Samsung Electronics and ANSYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, ANSYS 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 ANSYS will offset losses from the drop in ANSYS's long position.| Samsung Electronics vs. Strategic Education | Samsung Electronics vs. Firan Technology Group | Samsung Electronics vs. Sunny Optical Technology | Samsung Electronics vs. Addtech AB |
| ANSYS vs. Geely Automobile Holdings | ANSYS vs. Shenandoah Telecommunications | ANSYS vs. Commercial Vehicle Group | ANSYS vs. Ribbon Communications |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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