Correlation Between Samsung Electronics and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and ALBIS LEASING 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 ALBIS LEASING 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 ALBIS LEASING AG, you can compare the effects of market volatilities on Samsung Electronics and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and ALBIS LEASING.
Diversification Opportunities for Samsung Electronics and ALBIS LEASING
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and ALBIS is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and ALBIS LEASING go up and down completely randomly.
Pair Corralation between Samsung Electronics and ALBIS LEASING
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the ALBIS LEASING. In addition to that, Samsung Electronics is 2.12 times more volatile than ALBIS LEASING AG. It trades about -0.02 of its total potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.07 per unit of volatility. If you would invest 211.00 in ALBIS LEASING AG on October 16, 2024 and sell it today you would earn a total of 63.00 from holding ALBIS LEASING AG or generate 29.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. ALBIS LEASING AG
Performance |
| Timeline |
| Samsung Electronics |
| ALBIS LEASING AG |
Samsung Electronics and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and ALBIS LEASING
The main advantage of trading using opposite Samsung Electronics and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
| ALBIS LEASING vs. ELECTRONIC ARTS | ALBIS LEASING vs. Samsung Electronics Co | ALBIS LEASING vs. Benchmark Electronics | ALBIS LEASING vs. KIMBALL ELECTRONICS |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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