Correlation Between Samsung Electronics and Yoshiharu Global

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

Diversification Opportunities for Samsung Electronics and Yoshiharu Global

0.11

Correlation Coefficient

Samsung Electronics  Yoshiharu Global

Average diversification

The 3 months correlation between Samsung and Yoshiharu is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Yoshiharu Global Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoshiharu Global 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 Yoshiharu Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoshiharu Global has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Yoshiharu Global go up and down completely randomly.

Pair Corralation between Samsung Electronics and Yoshiharu Global

If you would invest  335.00  in Yoshiharu Global Co on December 30, 2024 and sell it today you would earn a total of  1,064  from holding Yoshiharu Global Co or generate 317.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

Samsung Electronics Co  vs.  Yoshiharu Global Co

Samsung Electronics

Risk-Adjusted Performance

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Yoshiharu Global

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Yoshiharu Global Co are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Yoshiharu Global demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Samsung Electronics and Yoshiharu Global

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

The idea behind Samsung Electronics Co and Yoshiharu Global Co 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.