Correlation Between Samsung Electronics and Actoz Soft

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

Diversification Opportunities for Samsung Electronics and Actoz Soft

-0.2

Correlation Coefficient

Samsung Electronics  Actoz Soft

Good diversification

The 3 months correlation between Samsung and Actoz is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Actoz Soft CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actoz Soft CoLtd 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 Actoz Soft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actoz Soft CoLtd has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Actoz Soft go up and down completely randomly.

Pair Corralation between Samsung Electronics and Actoz Soft

Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Actoz Soft. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.55 times less risky than Actoz Soft. The stock trades about -0.11 of its potential returns per unit of risk. The Actoz Soft CoLtd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  655,000  in Actoz Soft CoLtd on September 26, 2024 and sell it today you would earn a total of  11,000  from holding Actoz Soft CoLtd or generate 1.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Samsung Electronics Co  vs.  Actoz Soft CoLtd

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 weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Actoz Soft CoLtd

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Actoz Soft CoLtd are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Actoz Soft is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Samsung Electronics and Actoz Soft

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

The idea behind Samsung Electronics Co and Actoz Soft CoLtd 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.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.