Correlation Between Camellia Plc and Samsung Electronics

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Can any of the company-specific risk be diversified away by investing in both Camellia Plc 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 Camellia Plc and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camellia Plc and Samsung Electronics Co, you can compare the effects of market volatilities on Camellia Plc 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 Camellia Plc with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Plc and Samsung Electronics.

Diversification Opportunities for Camellia Plc and Samsung Electronics

CamelliaSamsungDiversified AwayCamelliaSamsungDiversified Away100%
-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Camellia and Samsung is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Plc and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Camellia Plc 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 Camellia Plc 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 Camellia Plc i.e., Camellia Plc and Samsung Electronics go up and down completely randomly.

Pair Corralation between Camellia Plc and Samsung Electronics

Assuming the 90 days trading horizon Camellia Plc is expected to generate 0.98 times more return on investment than Samsung Electronics. However, Camellia Plc is 1.02 times less risky than Samsung Electronics. It trades about 0.08 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.05 per unit of risk. If you would invest  435,000  in Camellia Plc on November 21, 2024 and sell it today you would earn a total of  37,000  from holding Camellia Plc or generate 8.51% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.39%
ValuesDaily Returns

Camellia Plc  vs.  Samsung Electronics Co

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015
JavaScript chart by amCharts 3.21.15CAM SMSD
       Timeline  
Camellia Plc 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Camellia Plc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Camellia Plc may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb4,4004,5004,6004,7004,8004,9005,0005,100
Samsung Electronics 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Samsung Electronics Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Samsung Electronics is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb750800850

Camellia Plc and Samsung Electronics Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.63-4.22-2.8-1.390.01.412.864.315.777.22 0.020.040.060.080.100.12
JavaScript chart by amCharts 3.21.15CAM SMSD
       Returns  

Pair Trading with Camellia Plc and Samsung Electronics

The main advantage of trading using opposite Camellia Plc and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Plc 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.
The idea behind Camellia Plc and Samsung Electronics 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.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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