Correlation Between Samsung Electronics and ABERFORTH SMCOS
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and ABERFORTH SMCOS 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 ABERFORTH SMCOS 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 ABERFORTH SMCOS TRLS 01, you can compare the effects of market volatilities on Samsung Electronics and ABERFORTH SMCOS 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 ABERFORTH SMCOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and ABERFORTH SMCOS.
Diversification Opportunities for Samsung Electronics and ABERFORTH SMCOS
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Samsung and ABERFORTH is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and ABERFORTH SMCOS TRLS 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABERFORTH SMCOS TRLS 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 ABERFORTH SMCOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABERFORTH SMCOS TRLS has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and ABERFORTH SMCOS go up and down completely randomly.
Pair Corralation between Samsung Electronics and ABERFORTH SMCOS
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 3.23 times more return on investment than ABERFORTH SMCOS. However, Samsung Electronics is 3.23 times more volatile than ABERFORTH SMCOS TRLS 01. It trades about 0.01 of its potential returns per unit of risk. ABERFORTH SMCOS TRLS 01 is currently generating about 0.0 per unit of risk. If you would invest 77,400 in Samsung Electronics Co on October 11, 2024 and sell it today you would lose (400.00) from holding Samsung Electronics Co or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.44% |
| Values | Daily Returns |
Samsung Electronics Co vs. ABERFORTH SMCOS TRLS 01
Performance |
| Timeline |
| Samsung Electronics |
| ABERFORTH SMCOS TRLS |
Samsung Electronics and ABERFORTH SMCOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and ABERFORTH SMCOS
The main advantage of trading using opposite Samsung Electronics and ABERFORTH SMCOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, ABERFORTH SMCOS 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 ABERFORTH SMCOS will offset losses from the drop in ABERFORTH SMCOS's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
| ABERFORTH SMCOS vs. UPDATE SOFTWARE | ABERFORTH SMCOS vs. Merit Medical Systems | ABERFORTH SMCOS vs. DXC Technology Co | ABERFORTH SMCOS vs. ONWARD MEDICAL BV |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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