Correlation Between Camellia Plc and Samsung Electronics
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
-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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Camellia Plc vs. Samsung Electronics Co
Performance |
Timeline |
Camellia Plc |
Samsung Electronics |
Camellia Plc and Samsung Electronics Volatility Contrast
Predicted Return Density |
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.Camellia Plc vs. National Beverage Corp | ||
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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 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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