Correlation Between Samsung Electronics and Om Holdings
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Om Holdings 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 Om Holdings 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 Om Holdings International, you can compare the effects of market volatilities on Samsung Electronics and Om Holdings 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 Om Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Om Holdings.
Diversification Opportunities for Samsung Electronics and Om Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and OMHI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Om Holdings International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Om Holdings International 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 Om Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Om Holdings International has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Om Holdings go up and down completely randomly.
Pair Corralation between Samsung Electronics and Om Holdings
If you would invest 4,035 in Samsung Electronics Co on December 1, 2024 and sell it today you would earn a total of 25.00 from holding Samsung Electronics Co or generate 0.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Samsung Electronics Co vs. Om Holdings International
Performance |
Timeline |
Samsung Electronics |
Om Holdings International |
Samsung Electronics and Om Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and Om Holdings
The main advantage of trading using opposite Samsung Electronics and Om Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Om Holdings 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 Om Holdings will offset losses from the drop in Om Holdings' long position.Samsung Electronics vs. Pfizer Inc | Samsung Electronics vs. American Express | Samsung Electronics vs. Alcoa Corp | Samsung Electronics vs. Cisco Systems |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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