Correlation Between Samsung Electronics and ROC Energy
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and ROC Energy 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 ROC Energy 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 ROC Energy Acquisition, you can compare the effects of market volatilities on Samsung Electronics and ROC Energy 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 ROC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and ROC Energy.
Diversification Opportunities for Samsung Electronics and ROC Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and ROC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and ROC Energy Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROC Energy Acquisition 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 ROC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROC Energy Acquisition has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and ROC Energy go up and down completely randomly.
Pair Corralation between Samsung Electronics and ROC Energy
If you would invest (100.00) in ROC Energy Acquisition on December 2, 2024 and sell it today you would earn a total of 100.00 from holding ROC Energy Acquisition 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. ROC Energy Acquisition
Performance |
Timeline |
Samsung Electronics |
ROC Energy Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Samsung Electronics and ROC Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and ROC Energy
The main advantage of trading using opposite Samsung Electronics and ROC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, ROC Energy 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 ROC Energy will offset losses from the drop in ROC Energy's long position.Samsung Electronics vs. Pfizer Inc | Samsung Electronics vs. American Express | Samsung Electronics vs. Alcoa Corp | Samsung Electronics vs. Cisco Systems |
ROC Energy vs. Elmos Semiconductor SE | ROC Energy vs. Taiwan Semiconductor Manufacturing | ROC Energy vs. Lipocine | ROC Energy vs. Apogee Therapeutics, Common |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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