Correlation Between Samsung Electronics and Eugene Special
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Eugene Special 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 Electronics and Eugene Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Eugene Special Purpose, you can compare the effects of market volatilities on Samsung Electronics and Eugene Special 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 Electronics with a short position of Eugene Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Eugene Special.
Diversification Opportunities for Samsung Electronics and Eugene Special
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Eugene is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Eugene Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Special Purpose and Samsung 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 Samsung Electronics Co are associated (or correlated) with Eugene Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Special Purpose has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Eugene Special go up and down completely randomly.
Pair Corralation between Samsung Electronics and Eugene Special
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.49 times more return on investment than Eugene Special. However, Samsung Electronics Co is 2.06 times less risky than Eugene Special. It trades about -0.03 of its potential returns per unit of risk. Eugene Special Purpose is currently generating about -0.21 per unit of risk. If you would invest 4,835,000 in Samsung Electronics Co on October 10, 2024 and sell it today you would lose (260,000) from holding Samsung Electronics Co or give up 5.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Samsung Electronics Co vs. Eugene Special Purpose
Performance |
Timeline |
Samsung Electronics |
Eugene Special Purpose |
Samsung Electronics and Eugene Special Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and Eugene Special
The main advantage of trading using opposite Samsung Electronics and Eugene Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Eugene Special 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 Eugene Special will offset losses from the drop in Eugene Special's long position.Samsung Electronics vs. DB Insurance Co | Samsung Electronics vs. DB Financial Investment | Samsung Electronics vs. Automobile Pc | Samsung Electronics vs. Daol Investment Securities |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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