Correlation Between Tatton Asset and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Tatton Asset 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 Tatton Asset and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tatton Asset Management and Samsung Electronics Co, you can compare the effects of market volatilities on Tatton Asset 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 Tatton Asset with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tatton Asset and Samsung Electronics.
Diversification Opportunities for Tatton Asset and Samsung Electronics
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tatton and Samsung is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tatton Asset Management and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Tatton Asset 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 Tatton Asset Management 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 Tatton Asset i.e., Tatton Asset and Samsung Electronics go up and down completely randomly.
Pair Corralation between Tatton Asset and Samsung Electronics
Assuming the 90 days trading horizon Tatton Asset Management is expected to generate 0.78 times more return on investment than Samsung Electronics. However, Tatton Asset Management is 1.27 times less risky than Samsung Electronics. It trades about -0.02 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.33 per unit of risk. If you would invest 70,000 in Tatton Asset Management on September 25, 2024 and sell it today you would lose (600.00) from holding Tatton Asset Management or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tatton Asset Management vs. Samsung Electronics Co
Performance |
| Timeline |
| Tatton Asset Management |
| Samsung Electronics |
Tatton Asset and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tatton Asset and Samsung Electronics
The main advantage of trading using opposite Tatton Asset and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tatton Asset 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.| Tatton Asset vs. UNIQA Insurance Group | Tatton Asset vs. Synthomer plc | Tatton Asset vs. National Bank of | Tatton Asset vs. Taiwan Semiconductor Manufacturing |
| Samsung Electronics vs. Rightmove PLC | Samsung Electronics vs. Bioventix | Samsung Electronics vs. VeriSign | Samsung Electronics vs. Games Workshop 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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