Correlation Between Samsung Electronics and OPERA SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and OPERA SOFTWARE 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 OPERA SOFTWARE 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 OPERA SOFTWARE, you can compare the effects of market volatilities on Samsung Electronics and OPERA SOFTWARE 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 OPERA SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and OPERA SOFTWARE.
Diversification Opportunities for Samsung Electronics and OPERA SOFTWARE
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and OPERA is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and OPERA SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPERA SOFTWARE 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 OPERA SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPERA SOFTWARE has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and OPERA SOFTWARE go up and down completely randomly.
Pair Corralation between Samsung Electronics and OPERA SOFTWARE
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the OPERA SOFTWARE. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.21 times less risky than OPERA SOFTWARE. The stock trades about -0.02 of its potential returns per unit of risk. The OPERA SOFTWARE is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 74.00 in OPERA SOFTWARE on October 13, 2024 and sell it today you would lose (10.00) from holding OPERA SOFTWARE or give up 13.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. OPERA SOFTWARE
Performance |
| Timeline |
| Samsung Electronics |
| OPERA SOFTWARE |
Samsung Electronics and OPERA SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and OPERA SOFTWARE
The main advantage of trading using opposite Samsung Electronics and OPERA SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, OPERA SOFTWARE 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 OPERA SOFTWARE will offset losses from the drop in OPERA SOFTWARE's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
| OPERA SOFTWARE vs. BOS BETTER ONLINE | OPERA SOFTWARE vs. Samsung Electronics Co | OPERA SOFTWARE vs. Electronic Arts | OPERA SOFTWARE vs. ELECTRONIC ARTS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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