Correlation Between Samsung Electronics and JDS UNIPHASE
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and JDS UNIPHASE 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 JDS UNIPHASE 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 JDS UNIPHASE, you can compare the effects of market volatilities on Samsung Electronics and JDS UNIPHASE 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 JDS UNIPHASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and JDS UNIPHASE.
Diversification Opportunities for Samsung Electronics and JDS UNIPHASE
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and JDS is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and JDS UNIPHASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JDS UNIPHASE 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 JDS UNIPHASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JDS UNIPHASE has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and JDS UNIPHASE go up and down completely randomly.
Pair Corralation between Samsung Electronics and JDS UNIPHASE
Assuming the 90 days trading horizon Samsung Electronics is expected to generate 15.09 times less return on investment than JDS UNIPHASE. In addition to that, Samsung Electronics is 1.25 times more volatile than JDS UNIPHASE. It trades about 0.0 of its total potential returns per unit of risk. JDS UNIPHASE is currently generating about 0.08 per unit of volatility. If you would invest 900.00 in JDS UNIPHASE on September 3, 2024 and sell it today you would earn a total of 30.00 from holding JDS UNIPHASE or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. JDS UNIPHASE
Performance |
| Timeline |
| Samsung Electronics |
| JDS UNIPHASE |
Samsung Electronics and JDS UNIPHASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and JDS UNIPHASE
The main advantage of trading using opposite Samsung Electronics and JDS UNIPHASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, JDS UNIPHASE 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 JDS UNIPHASE will offset losses from the drop in JDS UNIPHASE's long position.| Samsung Electronics vs. Quaker Chemical | Samsung Electronics vs. TIANDE CHEMICAL | Samsung Electronics vs. CARSALESCOM | Samsung Electronics vs. AIR PRODCHEMICALS |
| JDS UNIPHASE vs. Martin Marietta Materials | JDS UNIPHASE vs. Computer And Technologies | JDS UNIPHASE vs. Japan Tobacco | JDS UNIPHASE vs. Plastic Omnium |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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