Correlation Between Samsung Electronics and FlatexDEGIRO
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and FlatexDEGIRO 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 FlatexDEGIRO 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 flatexDEGIRO AG, you can compare the effects of market volatilities on Samsung Electronics and FlatexDEGIRO 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 FlatexDEGIRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and FlatexDEGIRO.
Diversification Opportunities for Samsung Electronics and FlatexDEGIRO
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and FlatexDEGIRO is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and flatexDEGIRO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on flatexDEGIRO AG 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 FlatexDEGIRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of flatexDEGIRO AG has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and FlatexDEGIRO go up and down completely randomly.
Pair Corralation between Samsung Electronics and FlatexDEGIRO
Assuming the 90 days trading horizon Samsung Electronics is expected to generate 4.49 times less return on investment than FlatexDEGIRO. But when comparing it to its historical volatility, Samsung Electronics Co is 1.36 times less risky than FlatexDEGIRO. It trades about 0.1 of its potential returns per unit of risk. flatexDEGIRO AG is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,576 in flatexDEGIRO AG on November 18, 2024 and sell it today you would earn a total of 278.00 from holding flatexDEGIRO AG or generate 17.64% 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. flatexDEGIRO AG
Performance |
| Timeline |
| Samsung Electronics |
| flatexDEGIRO AG |
Samsung Electronics and FlatexDEGIRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and FlatexDEGIRO
The main advantage of trading using opposite Samsung Electronics and FlatexDEGIRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, FlatexDEGIRO 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 FlatexDEGIRO will offset losses from the drop in FlatexDEGIRO's long position.| Samsung Electronics vs. IMAGIN MEDICAL INC | Samsung Electronics vs. Peijia Medical Limited | Samsung Electronics vs. YATRA ONLINE DL 0001 | Samsung Electronics vs. MUTUIONLINE |
| FlatexDEGIRO vs. COVIVIO HOTELS INH | FlatexDEGIRO vs. HYATT HOTELS A | FlatexDEGIRO vs. Corsair Gaming | FlatexDEGIRO vs. Xenia Hotels Resorts |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |