Correlation Between Samsung Electronics and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Apollo Investment 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 Apollo Investment 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 Apollo Investment Corp, you can compare the effects of market volatilities on Samsung Electronics and Apollo Investment 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 Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Apollo Investment.
Diversification Opportunities for Samsung Electronics and Apollo Investment
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Apollo is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp 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 Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Apollo Investment go up and down completely randomly.
Pair Corralation between Samsung Electronics and Apollo Investment
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Apollo Investment. In addition to that, Samsung Electronics is 2.58 times more volatile than Apollo Investment Corp. It trades about 0.0 of its total potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.36 per unit of volatility. If you would invest 1,208 in Apollo Investment Corp on September 1, 2024 and sell it today you would earn a total of 118.00 from holding Apollo Investment Corp or generate 9.77% 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. Apollo Investment Corp
Performance |
| Timeline |
| Samsung Electronics |
| Apollo Investment Corp |
Samsung Electronics and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Apollo Investment
The main advantage of trading using opposite Samsung Electronics and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Apollo Investment 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 Apollo Investment will offset losses from the drop in Apollo Investment's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
| Apollo Investment vs. USWE SPORTS AB | Apollo Investment vs. PARKEN Sport Entertainment | Apollo Investment vs. SPORTING | Apollo Investment vs. Transport International Holdings |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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