Correlation Between Samsung Electronics and AmerisourceBergen
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and AmerisourceBergen 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 AmerisourceBergen 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 AmerisourceBergen, you can compare the effects of market volatilities on Samsung Electronics and AmerisourceBergen 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 AmerisourceBergen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and AmerisourceBergen.
Diversification Opportunities for Samsung Electronics and AmerisourceBergen
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and AmerisourceBergen is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and AmerisourceBergen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AmerisourceBergen 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 AmerisourceBergen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AmerisourceBergen has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and AmerisourceBergen go up and down completely randomly.
Pair Corralation between Samsung Electronics and AmerisourceBergen
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 2.65 times more return on investment than AmerisourceBergen. However, Samsung Electronics is 2.65 times more volatile than AmerisourceBergen. It trades about -0.03 of its potential returns per unit of risk. AmerisourceBergen is currently generating about -0.1 per unit of risk. If you would invest 77,400 in Samsung Electronics Co on September 12, 2024 and sell it today you would lose (2,200) from holding Samsung Electronics Co or give up 2.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samsung Electronics Co vs. AmerisourceBergen
Performance |
| Timeline |
| Samsung Electronics |
| AmerisourceBergen |
Samsung Electronics and AmerisourceBergen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and AmerisourceBergen
The main advantage of trading using opposite Samsung Electronics and AmerisourceBergen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, AmerisourceBergen 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 AmerisourceBergen will offset losses from the drop in AmerisourceBergen's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Sony Group | Samsung Electronics vs. Superior Plus Corp | Samsung Electronics vs. SIVERS SEMICONDUCTORS AB |
| AmerisourceBergen vs. X FAB Silicon Foundries | AmerisourceBergen vs. TIANDE CHEMICAL | AmerisourceBergen vs. Sekisui Chemical Co | AmerisourceBergen vs. GALENA MINING LTD |
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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