Correlation Between Samsung Electronics and Park Hotels
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Park Hotels 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 Park Hotels 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 Park Hotels Resorts, you can compare the effects of market volatilities on Samsung Electronics and Park Hotels 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 Park Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Park Hotels.
Diversification Opportunities for Samsung Electronics and Park Hotels
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Park is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Park Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Hotels Resorts 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 Park Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Hotels Resorts has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Park Hotels go up and down completely randomly.
Pair Corralation between Samsung Electronics and Park Hotels
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Park Hotels. In addition to that, Samsung Electronics is 1.17 times more volatile than Park Hotels Resorts. It trades about -0.14 of its total potential returns per unit of risk. Park Hotels Resorts is currently generating about 0.09 per unit of volatility. If you would invest 1,383 in Park Hotels Resorts on September 15, 2024 and sell it today you would earn a total of 152.00 from holding Park Hotels Resorts or generate 10.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Samsung Electronics Co vs. Park Hotels Resorts
Performance |
Timeline |
Samsung Electronics |
Park Hotels Resorts |
Samsung Electronics and Park Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and Park Hotels
The main advantage of trading using opposite Samsung Electronics and Park Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Park Hotels 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 Park Hotels will offset losses from the drop in Park Hotels' long position.Samsung Electronics vs. Rockfire Resources plc | Samsung Electronics vs. Tlou Energy | Samsung Electronics vs. Ikigai Ventures | Samsung Electronics vs. Falcon Oil Gas |
Park Hotels vs. Samsung Electronics Co | Park Hotels vs. Samsung Electronics Co | Park Hotels vs. Hyundai Motor | Park Hotels vs. Reliance Industries Ltd |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |