Correlation Between Samsung Electronics and Fuji Media
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Fuji Media 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 Fuji Media 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 Fuji Media Holdings, you can compare the effects of market volatilities on Samsung Electronics and Fuji Media 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 Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Fuji Media.
Diversification Opportunities for Samsung Electronics and Fuji Media
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Fuji is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings 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 Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Fuji Media go up and down completely randomly.
Pair Corralation between Samsung Electronics and Fuji Media
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Fuji Media. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 2.59 times less risky than Fuji Media. The stock trades about -0.04 of its potential returns per unit of risk. The Fuji Media Holdings is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,040 in Fuji Media Holdings on November 3, 2024 and sell it today you would earn a total of 300.00 from holding Fuji Media Holdings or generate 28.85% 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. Fuji Media Holdings
Performance |
| Timeline |
| Samsung Electronics |
| Fuji Media Holdings |
Samsung Electronics and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Fuji Media
The main advantage of trading using opposite Samsung Electronics and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Fuji Media 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 Fuji Media will offset losses from the drop in Fuji Media's long position.| Samsung Electronics vs. Tsingtao Brewery | Samsung Electronics vs. SAN MIGUEL BREWERY | Samsung Electronics vs. GEELY AUTOMOBILE | Samsung Electronics vs. Commercial Vehicle Group |
| Fuji Media vs. Air Lease | Fuji Media vs. UNITED RENTALS | Fuji Media vs. Lifeway Foods | Fuji Media vs. MTY Food Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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