Correlation Between Samsung Electronics and ThedirectoryCom

Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and ThedirectoryCom 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 ThedirectoryCom 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 ThedirectoryCom, you can compare the effects of market volatilities on Samsung Electronics and ThedirectoryCom 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 ThedirectoryCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and ThedirectoryCom.

Diversification Opportunities for Samsung Electronics and ThedirectoryCom

-0.33

Correlation Coefficient

Samsung Electronics  ThedirectoryCom

Very good diversification

The 3 months correlation between Samsung and ThedirectoryCom is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and ThedirectoryCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ThedirectoryCom 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 ThedirectoryCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ThedirectoryCom has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and ThedirectoryCom go up and down completely randomly.

Pair Corralation between Samsung Electronics and ThedirectoryCom

If you would invest  4,060  in Samsung Electronics Co on September 29, 2024 and sell it today you would earn a total of  0.00  from holding Samsung Electronics Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Samsung Electronics Co  vs.  ThedirectoryCom

Samsung Electronics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samsung Electronics Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Samsung Electronics is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

ThedirectoryCom

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ThedirectoryCom has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Samsung Electronics and ThedirectoryCom

The main advantage of trading using opposite Samsung Electronics and ThedirectoryCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, ThedirectoryCom 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 ThedirectoryCom will offset losses from the drop in ThedirectoryCom's long position.

The idea behind Samsung Electronics Co and ThedirectoryCom pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.