Correlation Between Samsung SDI and Corning Incorporated
Can any of the company-specific risk be diversified away by investing in both Samsung SDI and Corning Incorporated 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 Samsung SDI and Corning Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung SDI Co and Corning Incorporated, you can compare the effects of market volatilities on Samsung SDI and Corning Incorporated 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 Samsung SDI with a short position of Corning Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung SDI and Corning Incorporated.
Diversification Opportunities for Samsung SDI and Corning Incorporated
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Corning is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Samsung SDI Co and Corning Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corning Incorporated and Samsung SDI 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 Samsung SDI Co are associated (or correlated) with Corning Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corning Incorporated has no effect on the direction of Samsung SDI i.e., Samsung SDI and Corning Incorporated go up and down completely randomly.
Pair Corralation between Samsung SDI and Corning Incorporated
Assuming the 90 days trading horizon Samsung SDI Co is expected to under-perform the Corning Incorporated. In addition to that, Samsung SDI is 2.77 times more volatile than Corning Incorporated. It trades about -0.12 of its total potential returns per unit of risk. Corning Incorporated is currently generating about 0.35 per unit of volatility. If you would invest 4,527 in Corning Incorporated on October 24, 2024 and sell it today you would earn a total of 292.00 from holding Corning Incorporated or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung SDI Co vs. Corning Incorporated
Performance |
| Timeline |
| Samsung SDI |
| Corning Incorporated |
Samsung SDI and Corning Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung SDI and Corning Incorporated
The main advantage of trading using opposite Samsung SDI and Corning Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung SDI position performs unexpectedly, Corning Incorporated 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 Corning Incorporated will offset losses from the drop in Corning Incorporated's long position.| Samsung SDI vs. Highlight Communications AG | Samsung SDI vs. CITIC Telecom International | Samsung SDI vs. China Communications Services | Samsung SDI vs. ecotel communication ag |
| Corning Incorporated vs. Aya Gold Silver | Corning Incorporated vs. Coffee Holding Co | Corning Incorporated vs. Perseus Mining Limited | Corning Incorporated vs. Endeavour Mining PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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