Correlation Between Samsung Electronics and Ocean Harvest
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Ocean Harvest 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 Ocean Harvest 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 Ocean Harvest Technology, you can compare the effects of market volatilities on Samsung Electronics and Ocean Harvest 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 Ocean Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Ocean Harvest.
Diversification Opportunities for Samsung Electronics and Ocean Harvest
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Ocean is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Ocean Harvest Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Harvest Technology 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 Ocean Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Harvest Technology has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Ocean Harvest go up and down completely randomly.
Pair Corralation between Samsung Electronics and Ocean Harvest
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.56 times more return on investment than Ocean Harvest. However, Samsung Electronics Co is 1.78 times less risky than Ocean Harvest. It trades about -0.01 of its potential returns per unit of risk. Ocean Harvest Technology is currently generating about -0.05 per unit of risk. If you would invest 108,076 in Samsung Electronics Co on December 4, 2024 and sell it today you would lose (15,776) from holding Samsung Electronics Co or give up 14.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.19% |
Values | Daily Returns |
Samsung Electronics Co vs. Ocean Harvest Technology
Performance |
Timeline |
Samsung Electronics |
Ocean Harvest Technology |
Samsung Electronics and Ocean Harvest Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and Ocean Harvest
The main advantage of trading using opposite Samsung Electronics and Ocean Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Ocean Harvest 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 Ocean Harvest will offset losses from the drop in Ocean Harvest's long position.Samsung Electronics vs. Silvercorp Metals | Samsung Electronics vs. Direct Line Insurance | Samsung Electronics vs. Liechtensteinische Landesbank AG | Samsung Electronics vs. Critical Metals Plc |
Ocean Harvest vs. Blackrock World Mining | Ocean Harvest vs. Atalaya Mining | Ocean Harvest vs. Endeavour Mining Corp | Ocean Harvest vs. Fulcrum Metals PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |