Correlation Between SOLSTAD OFFSHORE and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both SOLSTAD OFFSHORE and Samsung Electronics 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 SOLSTAD OFFSHORE and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOLSTAD OFFSHORE NK and Samsung Electronics Co, you can compare the effects of market volatilities on SOLSTAD OFFSHORE and Samsung Electronics 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 SOLSTAD OFFSHORE with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOLSTAD OFFSHORE and Samsung Electronics.
Diversification Opportunities for SOLSTAD OFFSHORE and Samsung Electronics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOLSTAD and Samsung is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SOLSTAD OFFSHORE NK and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE NK are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of SOLSTAD OFFSHORE i.e., SOLSTAD OFFSHORE and Samsung Electronics go up and down completely randomly.
Pair Corralation between SOLSTAD OFFSHORE and Samsung Electronics
Assuming the 90 days horizon SOLSTAD OFFSHORE NK is expected to generate 1.64 times more return on investment than Samsung Electronics. However, SOLSTAD OFFSHORE is 1.64 times more volatile than Samsung Electronics Co. It trades about 0.11 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.06 per unit of risk. If you would invest 275.00 in SOLSTAD OFFSHORE NK on October 14, 2024 and sell it today you would earn a total of 63.00 from holding SOLSTAD OFFSHORE NK or generate 22.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOLSTAD OFFSHORE NK vs. Samsung Electronics Co
Performance |
| Timeline |
| SOLSTAD OFFSHORE |
| Samsung Electronics |
SOLSTAD OFFSHORE and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOLSTAD OFFSHORE and Samsung Electronics
The main advantage of trading using opposite SOLSTAD OFFSHORE and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOLSTAD OFFSHORE position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| SOLSTAD OFFSHORE vs. G8 EDUCATION | SOLSTAD OFFSHORE vs. DeVry Education Group | SOLSTAD OFFSHORE vs. EEDUCATION ALBERT AB | SOLSTAD OFFSHORE vs. Hisense Home Appliances |
| Samsung Electronics vs. EIDESVIK OFFSHORE NK | Samsung Electronics vs. SOLSTAD OFFSHORE NK | Samsung Electronics vs. NORTHEAST UTILITIES | Samsung Electronics vs. United Utilities Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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