Correlation Between Samsung Electronics and JD HEALTH
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and JD HEALTH 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 JD HEALTH 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 JD HEALTH INTL, you can compare the effects of market volatilities on Samsung Electronics and JD HEALTH 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 JD HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and JD HEALTH.
Diversification Opportunities for Samsung Electronics and JD HEALTH
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and 8ZN is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and JD HEALTH INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD HEALTH INTL 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 JD HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD HEALTH INTL has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and JD HEALTH go up and down completely randomly.
Pair Corralation between Samsung Electronics and JD HEALTH
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the JD HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.08 times less risky than JD HEALTH. The stock trades about 0.0 of its potential returns per unit of risk. The JD HEALTH INTL is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 322.00 in JD HEALTH INTL on September 2, 2024 and sell it today you would earn a total of 18.00 from holding JD HEALTH INTL or generate 5.59% 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. JD HEALTH INTL
Performance |
| Timeline |
| Samsung Electronics |
| JD HEALTH INTL |
Samsung Electronics and JD HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and JD HEALTH
The main advantage of trading using opposite Samsung Electronics and JD HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, JD HEALTH 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 JD HEALTH will offset losses from the drop in JD HEALTH's long position.| Samsung Electronics vs. ScanSource | Samsung Electronics vs. QBE Insurance Group | Samsung Electronics vs. LIFENET INSURANCE CO | Samsung Electronics vs. Selective Insurance Group |
| JD HEALTH vs. Fresenius SE Co | JD HEALTH vs. Fresenius Medical Care | JD HEALTH vs. Sonic Healthcare Limited | JD HEALTH vs. Option Care Health |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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