Correlation Between Universal Electronics and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Universal Electronics 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 Universal Electronics and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Electronics and Samsung Electronics Co, you can compare the effects of market volatilities on Universal Electronics 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 Universal Electronics with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Electronics and Samsung Electronics.
Diversification Opportunities for Universal Electronics and Samsung Electronics
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Universal and Samsung is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Universal Electronics and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Universal 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 Universal Electronics 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 Universal Electronics i.e., Universal Electronics and Samsung Electronics go up and down completely randomly.
Pair Corralation between Universal Electronics and Samsung Electronics
If you would invest 4,060 in Samsung Electronics Co on November 18, 2024 and sell it today you would earn a total of 0.00 from holding Samsung Electronics Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Universal Electronics vs. Samsung Electronics Co
Performance |
| Timeline |
| Universal Electronics |
| Samsung Electronics |
Universal Electronics and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Electronics and Samsung Electronics
The main advantage of trading using opposite Universal Electronics and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Electronics 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.| Universal Electronics vs. LG Display Co | Universal Electronics vs. Zepp Health Corp | Universal Electronics vs. Sonos Inc | Universal Electronics vs. VOXX International |
| Samsung Electronics vs. Legacy Education | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. NVIDIA | Samsung Electronics vs. Microsoft |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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