Correlation Between Samsung Electronics and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Austevoll Seafood 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 Austevoll Seafood 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 Austevoll Seafood ASA, you can compare the effects of market volatilities on Samsung Electronics and Austevoll Seafood 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 Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Austevoll Seafood.
Diversification Opportunities for Samsung Electronics and Austevoll Seafood
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Austevoll is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA 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 Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Samsung Electronics and Austevoll Seafood
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Austevoll Seafood. In addition to that, Samsung Electronics is 1.92 times more volatile than Austevoll Seafood ASA. It trades about -0.17 of its total potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.05 per unit of volatility. If you would invest 9,583 in Austevoll Seafood ASA on September 12, 2024 and sell it today you would earn a total of 362.00 from holding Austevoll Seafood ASA or generate 3.78% 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. Austevoll Seafood ASA
Performance |
Timeline |
Samsung Electronics |
Austevoll Seafood ASA |
Samsung Electronics and Austevoll Seafood Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and Austevoll Seafood
The main advantage of trading using opposite Samsung Electronics and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood's long position.Samsung Electronics vs. McEwen Mining | Samsung Electronics vs. United Utilities Group | Samsung Electronics vs. Coor Service Management | Samsung Electronics vs. Jupiter Fund Management |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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