Correlation Between MEDCAW INVESTMENTS and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both MEDCAW INVESTMENTS 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 MEDCAW INVESTMENTS and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDCAW INVESTMENTS LS 01 and Samsung Electronics Co, you can compare the effects of market volatilities on MEDCAW INVESTMENTS 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 MEDCAW INVESTMENTS with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDCAW INVESTMENTS and Samsung Electronics.
Diversification Opportunities for MEDCAW INVESTMENTS and Samsung Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MEDCAW and Samsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MEDCAW INVESTMENTS LS 01 and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and MEDCAW INVESTMENTS 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 MEDCAW INVESTMENTS LS 01 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 MEDCAW INVESTMENTS i.e., MEDCAW INVESTMENTS and Samsung Electronics go up and down completely randomly.
Pair Corralation between MEDCAW INVESTMENTS and Samsung Electronics
Assuming the 90 days horizon MEDCAW INVESTMENTS LS 01 is expected to generate 2.41 times more return on investment than Samsung Electronics. However, MEDCAW INVESTMENTS is 2.41 times more volatile than Samsung Electronics Co. It trades about -0.01 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.02 per unit of risk. If you would invest 7.90 in MEDCAW INVESTMENTS LS 01 on October 19, 2024 and sell it today you would lose (3.85) from holding MEDCAW INVESTMENTS LS 01 or give up 48.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MEDCAW INVESTMENTS LS 01 vs. Samsung Electronics Co
Performance |
| Timeline |
| MEDCAW INVESTMENTS |
| Samsung Electronics |
MEDCAW INVESTMENTS and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDCAW INVESTMENTS and Samsung Electronics
The main advantage of trading using opposite MEDCAW INVESTMENTS and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDCAW INVESTMENTS 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.| MEDCAW INVESTMENTS vs. AEGEAN AIRLINES | MEDCAW INVESTMENTS vs. China Eastern Airlines | MEDCAW INVESTMENTS vs. Aegean Airlines SA | MEDCAW INVESTMENTS vs. VIVA WINE GROUP |
| Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Tencent Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |