Correlation Between Samsung Electronics and SENERELECSPGDR REGS
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and SENERELECSPGDR REGS 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 SENERELECSPGDR REGS 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 SENERELECSPGDR REGS 1, you can compare the effects of market volatilities on Samsung Electronics and SENERELECSPGDR REGS 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 SENERELECSPGDR REGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and SENERELECSPGDR REGS.
Diversification Opportunities for Samsung Electronics and SENERELECSPGDR REGS
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and SENERELECSPGDR is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and SENERELECSPGDR REGS 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENERELECSPGDR REGS 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 SENERELECSPGDR REGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENERELECSPGDR REGS has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and SENERELECSPGDR REGS go up and down completely randomly.
Pair Corralation between Samsung Electronics and SENERELECSPGDR REGS
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.4 times more return on investment than SENERELECSPGDR REGS. However, Samsung Electronics is 1.4 times more volatile than SENERELECSPGDR REGS 1. It trades about 0.08 of its potential returns per unit of risk. SENERELECSPGDR REGS 1 is currently generating about -0.08 per unit of risk. If you would invest 75,200 in Samsung Electronics Co on September 13, 2024 and sell it today you would earn a total of 3,400 from holding Samsung Electronics Co or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. SENERELECSPGDR REGS 1
Performance |
| Timeline |
| Samsung Electronics |
| SENERELECSPGDR REGS |
Samsung Electronics and SENERELECSPGDR REGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and SENERELECSPGDR REGS
The main advantage of trading using opposite Samsung Electronics and SENERELECSPGDR REGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, SENERELECSPGDR REGS 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 SENERELECSPGDR REGS will offset losses from the drop in SENERELECSPGDR REGS'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 |
| SENERELECSPGDR REGS vs. PLAY2CHILL SA ZY | SENERELECSPGDR REGS vs. Columbia Sportswear | SENERELECSPGDR REGS vs. USWE SPORTS AB | SENERELECSPGDR REGS vs. Playa Hotels Resorts |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |