Correlation Between Samsara and Adobe Systems

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

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

Diversification Opportunities for Samsara and Adobe Systems

0.58

Correlation Coefficient

Samsara  Adobe Systems

Very weak diversification

The 3 months correlation between Samsara and Adobe is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Samsara and Adobe Systems Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adobe Systems and Samsara 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 Samsara are associated (or correlated) with Adobe Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adobe Systems has no effect on the direction of Samsara i.e., Samsara and Adobe Systems go up and down completely randomly.

Pair Corralation between Samsara and Adobe Systems

Considering the 90-day investment horizon Samsara is expected to generate 1.52 times more return on investment than Adobe Systems. However, Samsara is 1.52 times more volatile than Adobe Systems Incorporated. It trades about -0.04 of its potential returns per unit of risk. Adobe Systems Incorporated is currently generating about -0.09 per unit of risk. If you would invest  4,391  in Samsara on December 28, 2024 and sell it today you would lose (498.00) from holding Samsara or give up 11.34% of portfolio value over 90 days.

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

Samsara  vs.  Adobe Systems Incorporated

Samsara

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samsara has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Adobe Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Adobe Systems Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Samsara and Adobe Systems

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

The idea behind Samsara and Adobe Systems Incorporated 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.