Correlation Between Naked Wines and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Naked Wines 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 Naked Wines and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naked Wines plc and Samsung Electronics Co, you can compare the effects of market volatilities on Naked Wines 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 Naked Wines with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Wines and Samsung Electronics.
Diversification Opportunities for Naked Wines and Samsung Electronics
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Naked and Samsung is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Naked Wines plc and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Naked Wines 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 Naked Wines plc 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 Naked Wines i.e., Naked Wines and Samsung Electronics go up and down completely randomly.
Pair Corralation between Naked Wines and Samsung Electronics
Assuming the 90 days trading horizon Naked Wines plc is expected to under-perform the Samsung Electronics. In addition to that, Naked Wines is 2.23 times more volatile than Samsung Electronics Co. It trades about -0.03 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.01 per unit of volatility. If you would invest 102,489 in Samsung Electronics Co on August 28, 2024 and sell it today you would lose (14,289) from holding Samsung Electronics Co or give up 13.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Naked Wines plc vs. Samsung Electronics Co
Performance |
| Timeline |
| Naked Wines plc |
| Samsung Electronics |
Naked Wines and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naked Wines and Samsung Electronics
The main advantage of trading using opposite Naked Wines and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Wines 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.| Naked Wines vs. Associated British Foods | Naked Wines vs. Leroy Seafood Group | Naked Wines vs. Lowland Investment Co | Naked Wines vs. Sligro Food Group |
| Samsung Electronics vs. Toyota Motor Corp | Samsung Electronics vs. SoftBank Group Corp | Samsung Electronics vs. OTP Bank Nyrt | Samsung Electronics vs. Las Vegas Sands |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |