Correlation Between Samsung Electronics and GFL ENVIRONM(SUBVTSH
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM, you can compare the effects of market volatilities on Samsung Electronics and GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM(SUBVTSH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and GFL ENVIRONM(SUBVTSH.
Diversification Opportunities for Samsung Electronics and GFL ENVIRONM(SUBVTSH
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and GFL is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and GFL ENVIRONM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM(SUBVTSH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFL ENVIRONM(SUBVTSH has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and GFL ENVIRONM(SUBVTSH go up and down completely randomly.
Pair Corralation between Samsung Electronics and GFL ENVIRONM(SUBVTSH
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the GFL ENVIRONM(SUBVTSH. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.12 times less risky than GFL ENVIRONM(SUBVTSH. The stock trades about -0.03 of its potential returns per unit of risk. The GFL ENVIRONM is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,412 in GFL ENVIRONM on August 31, 2024 and sell it today you would earn a total of 948.00 from holding GFL ENVIRONM or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Samsung Electronics Co vs. GFL ENVIRONM
Performance |
| Timeline |
| Samsung Electronics |
| GFL ENVIRONM(SUBVTSH |
Samsung Electronics and GFL ENVIRONM(SUBVTSH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and GFL ENVIRONM(SUBVTSH
The main advantage of trading using opposite Samsung Electronics and GFL ENVIRONM(SUBVTSH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, GFL ENVIRONM(SUBVTSH 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 GFL ENVIRONM(SUBVTSH will offset losses from the drop in GFL ENVIRONM(SUBVTSH's long position.| Samsung Electronics vs. Eastman Chemical | Samsung Electronics vs. Sekisui Chemical Co | Samsung Electronics vs. Computer And Technologies | Samsung Electronics vs. WESTLAKE CHEMICAL |
| GFL ENVIRONM(SUBVTSH vs. Ming Le Sports | GFL ENVIRONM(SUBVTSH vs. CHINA EDUCATION GROUP | GFL ENVIRONM(SUBVTSH vs. USWE SPORTS AB | GFL ENVIRONM(SUBVTSH vs. Transport International Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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