Correlation Between Samsung Electronics and HEALTHSTREAM (HL5SG)
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM, you can compare the effects of market volatilities on Samsung Electronics and HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG). Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and HEALTHSTREAM (HL5SG).
Diversification Opportunities for Samsung Electronics and HEALTHSTREAM (HL5SG)
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and HEALTHSTREAM is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and HEALTHSTREAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHSTREAM (HL5SG) has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and HEALTHSTREAM (HL5SG) go up and down completely randomly.
Pair Corralation between Samsung Electronics and HEALTHSTREAM (HL5SG)
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the HEALTHSTREAM (HL5SG). In addition to that, Samsung Electronics is 1.51 times more volatile than HEALTHSTREAM. It trades about -0.01 of its total potential returns per unit of risk. HEALTHSTREAM is currently generating about 0.11 per unit of volatility. If you would invest 2,980 in HEALTHSTREAM on October 24, 2024 and sell it today you would earn a total of 80.00 from holding HEALTHSTREAM or generate 2.68% 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. HEALTHSTREAM
Performance |
| Timeline |
| Samsung Electronics |
| HEALTHSTREAM (HL5SG) |
Samsung Electronics and HEALTHSTREAM (HL5SG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and HEALTHSTREAM (HL5SG)
The main advantage of trading using opposite Samsung Electronics and HEALTHSTREAM (HL5SG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM (HL5SG) will offset losses from the drop in HEALTHSTREAM (HL5SG)'s long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Sony Group Corp |
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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