Correlation Between Samsung Electronics and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and GREENX METALS 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 GREENX METALS 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 GREENX METALS LTD, you can compare the effects of market volatilities on Samsung Electronics and GREENX METALS 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 GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and GREENX METALS.
Diversification Opportunities for Samsung Electronics and GREENX METALS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and GREENX is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and GREENX METALS go up and down completely randomly.
Pair Corralation between Samsung Electronics and GREENX METALS
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the GREENX METALS. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 2.39 times less risky than GREENX METALS. The stock trades about -0.02 of its potential returns per unit of risk. The GREENX METALS LTD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 50.00 in GREENX METALS LTD on August 31, 2024 and sell it today you would lose (9.00) from holding GREENX METALS LTD or give up 18.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Samsung Electronics Co vs. GREENX METALS LTD
Performance |
| Timeline |
| Samsung Electronics |
| GREENX METALS LTD |
Samsung Electronics and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and GREENX METALS
The main advantage of trading using opposite Samsung Electronics and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech | GREENX METALS vs. SIVERS SEMICONDUCTORS AB |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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