Correlation Between Samsung Electronics and PLAYTIKA HOLDING
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING 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 PLAYTIKA HOLDING DL 01, you can compare the effects of market volatilities on Samsung Electronics and PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and PLAYTIKA HOLDING.
Diversification Opportunities for Samsung Electronics and PLAYTIKA HOLDING
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and PLAYTIKA is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and PLAYTIKA HOLDING DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTIKA HOLDING 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 PLAYTIKA HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTIKA HOLDING has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and PLAYTIKA HOLDING go up and down completely randomly.
Pair Corralation between Samsung Electronics and PLAYTIKA HOLDING
Assuming the 90 days trading horizon Samsung Electronics is expected to generate 6.48 times less return on investment than PLAYTIKA HOLDING. In addition to that, Samsung Electronics is 1.29 times more volatile than PLAYTIKA HOLDING DL 01. It trades about 0.03 of its total potential returns per unit of risk. PLAYTIKA HOLDING DL 01 is currently generating about 0.24 per unit of volatility. If you would invest 720.00 in PLAYTIKA HOLDING DL 01 on August 28, 2024 and sell it today you would earn a total of 90.00 from holding PLAYTIKA HOLDING DL 01 or generate 12.5% 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. PLAYTIKA HOLDING DL 01
Performance |
| Timeline |
| Samsung Electronics |
| PLAYTIKA HOLDING |
Samsung Electronics and PLAYTIKA HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and PLAYTIKA HOLDING
The main advantage of trading using opposite Samsung Electronics and PLAYTIKA HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, PLAYTIKA HOLDING 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 PLAYTIKA HOLDING will offset losses from the drop in PLAYTIKA HOLDING's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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