Correlation Between Samsung Electronics and Pick N
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Pick N 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 Pick N 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 Pick n Pay, you can compare the effects of market volatilities on Samsung Electronics and Pick N 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 Pick N. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Pick N.
Diversification Opportunities for Samsung Electronics and Pick N
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Pick is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Pick n Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pick n Pay 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 Pick N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pick n Pay has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Pick N go up and down completely randomly.
Pair Corralation between Samsung Electronics and Pick N
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Pick N. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.02 times less risky than Pick N. The stock trades about 0.0 of its potential returns per unit of risk. The Pick n Pay is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 131.00 in Pick n Pay on September 2, 2024 and sell it today you would earn a total of 24.00 from holding Pick n Pay or generate 18.32% 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. Pick n Pay
Performance |
| Timeline |
| Samsung Electronics |
| Pick n Pay |
Samsung Electronics and Pick N Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Pick N
The main advantage of trading using opposite Samsung Electronics and Pick N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Pick N 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 Pick N will offset losses from the drop in Pick N'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 |
| Pick N vs. Taiwan Semiconductor Manufacturing | Pick N vs. AUSTEVOLL SEAFOOD | Pick N vs. Tower Semiconductor | Pick N vs. CN MODERN DAIRY |
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.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |