Correlation Between SIVERS SEMICONDUCTORS and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Samsung Electronics 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 SIVERS SEMICONDUCTORS and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and Samsung Electronics Co, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Samsung Electronics 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 SIVERS SEMICONDUCTORS with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Samsung Electronics.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Samsung Electronics
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SIVERS and Samsung is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS AB are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Samsung Electronics go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Samsung Electronics
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Samsung Electronics. In addition to that, SIVERS SEMICONDUCTORS is 3.22 times more volatile than Samsung Electronics Co. It trades about -0.12 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.09 per unit of volatility. If you would invest 89,554 in Samsung Electronics Co on September 13, 2024 and sell it today you would lose (14,354) from holding Samsung Electronics Co or give up 16.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Samsung Electronics Co
Performance |
Timeline |
SIVERS SEMICONDUCTORS |
Samsung Electronics |
SIVERS SEMICONDUCTORS and Samsung Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Samsung Electronics
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.SIVERS SEMICONDUCTORS vs. REGAL ASIAN INVESTMENTS | SIVERS SEMICONDUCTORS vs. Monster Beverage Corp | SIVERS SEMICONDUCTORS vs. SLR Investment Corp | SIVERS SEMICONDUCTORS vs. PennyMac Mortgage Investment |
Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Sony Group | Samsung Electronics vs. Superior Plus Corp | Samsung Electronics vs. SIVERS SEMICONDUCTORS AB |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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