Correlation Between Samsung Electronics and Robinhood Markets
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Robinhood Markets 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 Robinhood Markets 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 Robinhood Markets, you can compare the effects of market volatilities on Samsung Electronics and Robinhood Markets 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 Robinhood Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Robinhood Markets.
Diversification Opportunities for Samsung Electronics and Robinhood Markets
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Robinhood is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Robinhood Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinhood Markets 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 Robinhood Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinhood Markets has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Robinhood Markets go up and down completely randomly.
Pair Corralation between Samsung Electronics and Robinhood Markets
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Robinhood Markets. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.8 times less risky than Robinhood Markets. The stock trades about -0.02 of its potential returns per unit of risk. The Robinhood Markets is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 828.00 in Robinhood Markets on September 3, 2024 and sell it today you would earn a total of 2,726 from holding Robinhood Markets or generate 329.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Robinhood Markets
Performance |
| Timeline |
| Samsung Electronics |
| Robinhood Markets |
Samsung Electronics and Robinhood Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Robinhood Markets
The main advantage of trading using opposite Samsung Electronics and Robinhood Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Robinhood Markets 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 Robinhood Markets will offset losses from the drop in Robinhood Markets' long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Xiaomi | Samsung Electronics vs. Panasonic Corp |
| Robinhood Markets vs. GREENX METALS LTD | Robinhood Markets vs. Zijin Mining Group | Robinhood Markets vs. Western Copper and | Robinhood Markets vs. ADRIATIC METALS LS 013355 |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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