Correlation Between Samsung Electronics and MOLSON COORS
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and MOLSON COORS 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 MOLSON COORS 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 MOLSON RS BEVERAGE, you can compare the effects of market volatilities on Samsung Electronics and MOLSON COORS 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 MOLSON COORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and MOLSON COORS.
Diversification Opportunities for Samsung Electronics and MOLSON COORS
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and MOLSON is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE 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 MOLSON COORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOLSON RS BEVERAGE has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and MOLSON COORS go up and down completely randomly.
Pair Corralation between Samsung Electronics and MOLSON COORS
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the MOLSON COORS. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.5 times less risky than MOLSON COORS. The stock trades about 0.0 of its potential returns per unit of risk. The MOLSON RS BEVERAGE is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,264 in MOLSON RS BEVERAGE on August 24, 2024 and sell it today you would lose (714.00) from holding MOLSON RS BEVERAGE or give up 11.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| Samsung Electronics |
| MOLSON RS BEVERAGE |
Samsung Electronics and MOLSON COORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and MOLSON COORS
The main advantage of trading using opposite Samsung Electronics and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, MOLSON COORS 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 MOLSON COORS will offset losses from the drop in MOLSON COORS's long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Apple Inc |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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