Correlation Between Samsung Electronics and TRADEGATE
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and TRADEGATE 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 TRADEGATE 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 TRADEGATE, you can compare the effects of market volatilities on Samsung Electronics and TRADEGATE 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 TRADEGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and TRADEGATE.
Diversification Opportunities for Samsung Electronics and TRADEGATE
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samsung and TRADEGATE is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and TRADEGATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEGATE 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 TRADEGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEGATE has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and TRADEGATE go up and down completely randomly.
Pair Corralation between Samsung Electronics and TRADEGATE
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the TRADEGATE. In addition to that, Samsung Electronics is 7.39 times more volatile than TRADEGATE. It trades about -0.04 of its total potential returns per unit of risk. TRADEGATE is currently generating about -0.12 per unit of volatility. If you would invest 9,000 in TRADEGATE on November 3, 2024 and sell it today you would lose (50.00) from holding TRADEGATE or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. TRADEGATE
Performance |
| Timeline |
| Samsung Electronics |
| TRADEGATE |
Samsung Electronics and TRADEGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and TRADEGATE
The main advantage of trading using opposite Samsung Electronics and TRADEGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, TRADEGATE 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 TRADEGATE will offset losses from the drop in TRADEGATE'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 |
| TRADEGATE vs. STRAYER EDUCATION | TRADEGATE vs. American Public Education | TRADEGATE vs. Melco Resorts Entertainment | TRADEGATE vs. G8 EDUCATION |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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