Correlation Between Zepp Health and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Zepp Health 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 Zepp Health and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zepp Health Corp and Samsung Electronics Co, you can compare the effects of market volatilities on Zepp Health 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 Zepp Health with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zepp Health and Samsung Electronics.
Diversification Opportunities for Zepp Health and Samsung Electronics
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zepp and Samsung is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zepp Health Corp and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Zepp Health 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 Zepp Health Corp 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 Zepp Health i.e., Zepp Health and Samsung Electronics go up and down completely randomly.
Pair Corralation between Zepp Health and Samsung Electronics
If you would invest 4,060 in Samsung Electronics Co on August 27, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zepp Health Corp vs. Samsung Electronics Co
Performance |
| Timeline |
| Zepp Health Corp |
| Samsung Electronics |
Zepp Health and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zepp Health and Samsung Electronics
The main advantage of trading using opposite Zepp Health and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zepp Health 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.| Zepp Health vs. VOXX International | Zepp Health vs. LG Display Co | Zepp Health vs. Vizio Holding Corp | Zepp Health vs. Turtle Beach Corp |
| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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