Correlation Between Samsung Electronics and INTRA ENERGY
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and INTRA ENERGY 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 INTRA ENERGY 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 INTRA ENERGY, you can compare the effects of market volatilities on Samsung Electronics and INTRA ENERGY 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 INTRA ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and INTRA ENERGY.
Diversification Opportunities for Samsung Electronics and INTRA ENERGY
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and INTRA is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and INTRA ENERGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTRA ENERGY 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 INTRA ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTRA ENERGY has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and INTRA ENERGY go up and down completely randomly.
Pair Corralation between Samsung Electronics and INTRA ENERGY
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the INTRA ENERGY. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 2.51 times less risky than INTRA ENERGY. The stock trades about -0.16 of its potential returns per unit of risk. The INTRA ENERGY is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 41.00 in INTRA ENERGY on September 2, 2024 and sell it today you would lose (2.00) from holding INTRA ENERGY or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. INTRA ENERGY
Performance |
| Timeline |
| Samsung Electronics |
| INTRA ENERGY |
Samsung Electronics and INTRA ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and INTRA ENERGY
The main advantage of trading using opposite Samsung Electronics and INTRA ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, INTRA ENERGY 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 INTRA ENERGY will offset losses from the drop in INTRA ENERGY'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 |
| INTRA ENERGY vs. NTG Nordic Transport | INTRA ENERGY vs. TITANIUM TRANSPORTGROUP | INTRA ENERGY vs. Broadcom | INTRA ENERGY vs. Ares Management Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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