Correlation Between Samsung Electronics and Getlink SE
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Getlink SE 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 Getlink SE 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 Getlink SE, you can compare the effects of market volatilities on Samsung Electronics and Getlink SE 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 Getlink SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Getlink SE.
Diversification Opportunities for Samsung Electronics and Getlink SE
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and Getlink is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Getlink SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getlink SE 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 Getlink SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getlink SE has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Getlink SE go up and down completely randomly.
Pair Corralation between Samsung Electronics and Getlink SE
Assuming the 90 days horizon Samsung Electronics is expected to generate 1.14 times less return on investment than Getlink SE. In addition to that, Samsung Electronics is 1.31 times more volatile than Getlink SE. It trades about 0.03 of its total potential returns per unit of risk. Getlink SE is currently generating about 0.04 per unit of volatility. If you would invest 1,521 in Getlink SE on December 3, 2024 and sell it today you would earn a total of 45.00 from holding Getlink SE or generate 2.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Samsung Electronics Co vs. Getlink SE
Performance |
Timeline |
Samsung Electronics |
Getlink SE |
Samsung Electronics and Getlink SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and Getlink SE
The main advantage of trading using opposite Samsung Electronics and Getlink SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Getlink SE 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 Getlink SE will offset losses from the drop in Getlink SE's long position.Samsung Electronics vs. HAPPY BELLY FOOD | Samsung Electronics vs. PennantPark Investment | Samsung Electronics vs. Sligro Food Group | Samsung Electronics vs. Guangdong Investment Limited |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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