Correlation Between Samsung Electronics and SCOR SE
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and SCOR SE 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 SCOR SE 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 SCOR SE, you can compare the effects of market volatilities on Samsung Electronics and SCOR SE 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 SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and SCOR SE.
Diversification Opportunities for Samsung Electronics and SCOR SE
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and SCOR is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE 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 SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and SCOR SE go up and down completely randomly.
Pair Corralation between Samsung Electronics and SCOR SE
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the SCOR SE. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.26 times less risky than SCOR SE. The stock trades about -0.02 of its potential returns per unit of risk. The SCOR SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,075 in SCOR SE on October 13, 2024 and sell it today you would earn a total of 389.00 from holding SCOR SE or generate 18.75% 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. SCOR SE
Performance |
| Timeline |
| Samsung Electronics |
| SCOR SE |
Samsung Electronics and SCOR SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and SCOR SE
The main advantage of trading using opposite Samsung Electronics and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE's long position.| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
| SCOR SE vs. Nanjing Panda Electronics | SCOR SE vs. Samsung Electronics Co | SCOR SE vs. LPKF Laser Electronics | SCOR SE vs. Zoom Video Communications |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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