Correlation Between Samsung Electronics and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Cohen Steers 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 Cohen Steers 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 Cohen Steers, you can compare the effects of market volatilities on Samsung Electronics and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Cohen Steers.
Diversification Opportunities for Samsung Electronics and Cohen Steers
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Cohen is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Cohen Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Cohen Steers go up and down completely randomly.
Pair Corralation between Samsung Electronics and Cohen Steers
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Cohen Steers. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.08 times less risky than Cohen Steers. The stock trades about -0.01 of its potential returns per unit of risk. The Cohen Steers is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,857 in Cohen Steers on September 2, 2024 and sell it today you would earn a total of 3,693 from holding Cohen Steers or generate 63.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Cohen Steers
Performance |
| Timeline |
| Samsung Electronics |
| Cohen Steers |
Samsung Electronics and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Cohen Steers
The main advantage of trading using opposite Samsung Electronics and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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