Correlation Between Samsung Electronics and PF Industries
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and PF Industries 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 PF Industries 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 PF Industries, you can compare the effects of market volatilities on Samsung Electronics and PF Industries 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 PF Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and PF Industries.
Diversification Opportunities for Samsung Electronics and PF Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and PFIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and PF Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PF Industries 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 PF Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PF Industries has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and PF Industries go up and down completely randomly.
Pair Corralation between Samsung Electronics and PF Industries
If you would invest (100.00) in PF Industries on December 28, 2024 and sell it today you would earn a total of 100.00 from holding PF Industries or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Samsung Electronics Co vs. PF Industries
Performance |
Timeline |
Samsung Electronics |
PF Industries |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Samsung Electronics and PF Industries Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and PF Industries
The main advantage of trading using opposite Samsung Electronics and PF Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, PF Industries 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 PF Industries will offset losses from the drop in PF Industries' long position.Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Microsoft | Samsung Electronics vs. NVIDIA | Samsung Electronics vs. Bristol Myers Squibb |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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