Correlation Between Wearable Devices and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Wearable Devices 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 Wearable Devices and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wearable Devices and Samsung Electronics Co, you can compare the effects of market volatilities on Wearable Devices 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 Wearable Devices with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wearable Devices and Samsung Electronics.
Diversification Opportunities for Wearable Devices and Samsung Electronics
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wearable and Samsung is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Wearable Devices and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Wearable Devices 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 Wearable Devices 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 Wearable Devices i.e., Wearable Devices and Samsung Electronics go up and down completely randomly.
Pair Corralation between Wearable Devices and Samsung Electronics
Given the investment horizon of 90 days Wearable Devices is expected to generate 189.04 times more return on investment than Samsung Electronics. However, Wearable Devices is 189.04 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 0.1 per unit of risk. If you would invest 1,470 in Wearable Devices on August 30, 2024 and sell it today you would lose (1,257) from holding Wearable Devices or give up 85.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wearable Devices vs. Samsung Electronics Co
Performance |
| Timeline |
| Wearable Devices |
| Samsung Electronics |
Wearable Devices and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wearable Devices and Samsung Electronics
The main advantage of trading using opposite Wearable Devices and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wearable Devices 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.| Wearable Devices vs. Koss Corporation | Wearable Devices vs. Wearable Devices | Wearable Devices vs. Sonos Inc | Wearable Devices vs. LG Display Co |
| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. Alphabet Inc Class C | Samsung Electronics vs. Meta Platforms |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |