Correlation Between FANDIFI TECHNOLOGY and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANDIFI TECHNOLOGY P and Samsung Electronics Co, you can compare the effects of market volatilities on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANDIFI TECHNOLOGY and Samsung Electronics.
Diversification Opportunities for FANDIFI TECHNOLOGY and Samsung Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FANDIFI and Samsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FANDIFI TECHNOLOGY P and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P 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 FANDIFI TECHNOLOGY i.e., FANDIFI TECHNOLOGY and Samsung Electronics go up and down completely randomly.
Pair Corralation between FANDIFI TECHNOLOGY and Samsung Electronics
Assuming the 90 days horizon FANDIFI TECHNOLOGY P is expected to generate 13.29 times more return on investment than Samsung Electronics. However, FANDIFI TECHNOLOGY is 13.29 times more volatile than Samsung Electronics Co. It trades about 0.04 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.01 per unit of risk. If you would invest 3.20 in FANDIFI TECHNOLOGY P on October 13, 2024 and sell it today you would lose (3.15) from holding FANDIFI TECHNOLOGY P or give up 98.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
FANDIFI TECHNOLOGY P vs. Samsung Electronics Co
Performance |
| Timeline |
| FANDIFI TECHNOLOGY |
| Samsung Electronics |
FANDIFI TECHNOLOGY and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANDIFI TECHNOLOGY and Samsung Electronics
The main advantage of trading using opposite FANDIFI TECHNOLOGY and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANDIFI TECHNOLOGY 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.| FANDIFI TECHNOLOGY vs. Rayonier Advanced Materials | FANDIFI TECHNOLOGY vs. Pembina Pipeline Corp | FANDIFI TECHNOLOGY vs. Khiron Life Sciences | FANDIFI TECHNOLOGY vs. PT Steel Pipe |
| Samsung Electronics vs. Alliance Data Systems | Samsung Electronics vs. Teradata Corp | Samsung Electronics vs. PRECISION DRILLING P | Samsung Electronics vs. Columbia Sportswear |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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