Correlation Between Samsung Biologics and BitNine

Can any of the company-specific risk be diversified away by investing in both Samsung Biologics and BitNine 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 Biologics and BitNine into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Samsung Biologics Co and BitNine Co, you can compare the effects of market volatilities on Samsung Biologics and BitNine 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 Biologics with a short position of BitNine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Biologics and BitNine.

Diversification Opportunities for Samsung Biologics and BitNine

-0.45

Correlation Coefficient

Samsung Biologics  BitNine

Very good diversification

The 3 months correlation between Samsung and BitNine is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Biologics Co and BitNine Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitNine and Samsung Biologics 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 Biologics Co are associated (or correlated) with BitNine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitNine has no effect on the direction of Samsung Biologics i.e., Samsung Biologics and BitNine go up and down completely randomly.

Pair Corralation between Samsung Biologics and BitNine

If you would invest  100,000,000  in Samsung Biologics Co on December 11, 2024 and sell it today you would earn a total of  0.00  from holding Samsung Biologics Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Samsung Biologics Co  vs.  BitNine Co

Samsung Biologics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Samsung Biologics Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Samsung Biologics is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

BitNine

Risk-Adjusted Performance

Very Weak

Over the last 90 days BitNine Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Samsung Biologics and BitNine

The main advantage of trading using opposite Samsung Biologics and BitNine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Biologics position performs unexpectedly, BitNine 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 BitNine will offset losses from the drop in BitNine's long position.

The idea behind Samsung Biologics Co and BitNine Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.