Correlation Between Samsung Electronics and Nanjing Panda
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Nanjing Panda 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 Nanjing Panda 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 Nanjing Panda Electronics, you can compare the effects of market volatilities on Samsung Electronics and Nanjing Panda 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 Nanjing Panda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Nanjing Panda.
Diversification Opportunities for Samsung Electronics and Nanjing Panda
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Nanjing is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Nanjing Panda Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Panda Electronics 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 Nanjing Panda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Panda Electronics has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Nanjing Panda go up and down completely randomly.
Pair Corralation between Samsung Electronics and Nanjing Panda
If you would invest 33.00 in Nanjing Panda Electronics on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Nanjing Panda Electronics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Samsung Electronics Co vs. Nanjing Panda Electronics
Performance |
| Timeline |
| Samsung Electronics |
| Nanjing Panda Electronics |
Samsung Electronics and Nanjing Panda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Nanjing Panda
The main advantage of trading using opposite Samsung Electronics and Nanjing Panda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Nanjing Panda 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 Nanjing Panda will offset losses from the drop in Nanjing Panda's 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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