Correlation Between Samsung Electronics and Lowland Investment
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Lowland Investment 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 Lowland Investment 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 Lowland Investment Co, you can compare the effects of market volatilities on Samsung Electronics and Lowland Investment 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 Lowland Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Lowland Investment.
Diversification Opportunities for Samsung Electronics and Lowland Investment
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Lowland is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Lowland Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lowland Investment 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 Lowland Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lowland Investment has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Lowland Investment go up and down completely randomly.
Pair Corralation between Samsung Electronics and Lowland Investment
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Lowland Investment. In addition to that, Samsung Electronics is 1.61 times more volatile than Lowland Investment Co. It trades about 0.0 of its total potential returns per unit of risk. Lowland Investment Co is currently generating about 0.01 per unit of volatility. If you would invest 12,100 in Lowland Investment Co on September 23, 2024 and sell it today you would earn a total of 300.00 from holding Lowland Investment Co or generate 2.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Samsung Electronics Co vs. Lowland Investment Co
Performance |
Timeline |
Samsung Electronics |
Lowland Investment |
Samsung Electronics and Lowland Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and Lowland Investment
The main advantage of trading using opposite Samsung Electronics and Lowland Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Lowland Investment 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 Lowland Investment will offset losses from the drop in Lowland Investment's long position.Samsung Electronics vs. Addtech | Samsung Electronics vs. Roper Technologies | Samsung Electronics vs. alstria office REIT AG | Samsung Electronics vs. Arrow Electronics |
Lowland Investment vs. Samsung Electronics Co | Lowland Investment vs. Samsung Electronics Co | Lowland Investment vs. Hyundai Motor | Lowland Investment 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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