Correlation Between Samsung Electronics and COREBRIDGE FINANCIAL
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL INC, you can compare the effects of market volatilities on Samsung Electronics and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and COREBRIDGE FINANCIAL.
Diversification Opportunities for Samsung Electronics and COREBRIDGE FINANCIAL
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and COREBRIDGE is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and COREBRIDGE FINANCIAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COREBRIDGE FINANCIAL INC 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 COREBRIDGE FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COREBRIDGE FINANCIAL INC has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and COREBRIDGE FINANCIAL go up and down completely randomly.
Pair Corralation between Samsung Electronics and COREBRIDGE FINANCIAL
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the COREBRIDGE FINANCIAL. In addition to that, Samsung Electronics is 1.4 times more volatile than COREBRIDGE FINANCIAL INC. It trades about -0.08 of its total potential returns per unit of risk. COREBRIDGE FINANCIAL INC is currently generating about 0.27 per unit of volatility. If you would invest 2,857 in COREBRIDGE FINANCIAL INC on October 13, 2024 and sell it today you would earn a total of 163.00 from holding COREBRIDGE FINANCIAL INC or generate 5.71% 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. COREBRIDGE FINANCIAL INC
Performance |
| Timeline |
| Samsung Electronics |
| COREBRIDGE FINANCIAL INC |
Samsung Electronics and COREBRIDGE FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and COREBRIDGE FINANCIAL
The main advantage of trading using opposite Samsung Electronics and COREBRIDGE FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL will offset losses from the drop in COREBRIDGE FINANCIAL's long position.| Samsung Electronics vs. INDO RAMA SYNTHETIC | Samsung Electronics vs. Mitsubishi Gas Chemical | Samsung Electronics vs. United Natural Foods | Samsung Electronics vs. Sanyo Chemical Industries |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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