Correlation Between Samsung Electronics and Appian Corp
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Appian Corp 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 Appian Corp 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 Appian Corp, you can compare the effects of market volatilities on Samsung Electronics and Appian Corp 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 Appian Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Appian Corp.
Diversification Opportunities for Samsung Electronics and Appian Corp
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Appian is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Appian Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appian 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 Appian Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appian Corp has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Appian Corp go up and down completely randomly.
Pair Corralation between Samsung Electronics and Appian Corp
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Appian Corp. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.01 times less risky than Appian Corp. The stock trades about -0.01 of its potential returns per unit of risk. The Appian Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,387 in Appian Corp on September 2, 2024 and sell it today you would earn a total of 119.00 from holding Appian Corp or generate 3.51% 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. Appian Corp
Performance |
| Timeline |
| Samsung Electronics |
| Appian Corp |
Samsung Electronics and Appian Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Appian Corp
The main advantage of trading using opposite Samsung Electronics and Appian Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Appian Corp 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 Appian Corp will offset losses from the drop in Appian Corp's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
| Appian Corp vs. RCM TECHNOLOGIES | Appian Corp vs. Microbot Medical | Appian Corp vs. Warner Music Group | Appian Corp vs. ORMAT TECHNOLOGIES |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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