Correlation Between Samsung Electronics and Intuitive Investments
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Intuitive Investments 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 Intuitive Investments 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 Intuitive Investments Group, you can compare the effects of market volatilities on Samsung Electronics and Intuitive Investments 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 Intuitive Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Intuitive Investments.
Diversification Opportunities for Samsung Electronics and Intuitive Investments
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Samsung and Intuitive is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Intuitive Investments Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Investments 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 Intuitive Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Investments has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Intuitive Investments go up and down completely randomly.
Pair Corralation between Samsung Electronics and Intuitive Investments
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Intuitive Investments. In addition to that, Samsung Electronics is 1.74 times more volatile than Intuitive Investments Group. It trades about -0.27 of its total potential returns per unit of risk. Intuitive Investments Group is currently generating about -0.17 per unit of volatility. If you would invest 12,450 in Intuitive Investments Group on September 24, 2024 and sell it today you would lose (450.00) from holding Intuitive Investments Group or give up 3.61% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Samsung Electronics Co vs. Intuitive Investments Group
Performance |
Timeline |
Samsung Electronics |
Intuitive Investments |
Samsung Electronics and Intuitive Investments Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and Intuitive Investments
The main advantage of trading using opposite Samsung Electronics and Intuitive Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Intuitive Investments 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 Intuitive Investments will offset losses from the drop in Intuitive Investments' long position.Samsung Electronics vs. Air Products Chemicals | Samsung Electronics vs. Alliance Data Systems | Samsung Electronics vs. Erste Group Bank | Samsung Electronics vs. UNIQA Insurance Group |
Intuitive Investments vs. Samsung Electronics Co | Intuitive Investments vs. Samsung Electronics Co | Intuitive Investments vs. Hyundai Motor | Intuitive Investments vs. Toyota Motor Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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