Correlation Between Monex SAB and Samsung Electronics

Can any of the company-specific risk be diversified away by investing in both Monex SAB 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 Monex SAB and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Monex SAB de and Samsung Electronics Co, you can compare the effects of market volatilities on Monex SAB 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 Monex SAB with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monex SAB and Samsung Electronics.

Diversification Opportunities for Monex SAB and Samsung Electronics

0.0

Correlation Coefficient

Monex SAB  Samsung Electronics

Pay attention - limited upside

The 3 months correlation between Monex and Samsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Monex SAB de and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Monex SAB 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 Monex SAB de 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 Monex SAB i.e., Monex SAB and Samsung Electronics go up and down completely randomly.

Pair Corralation between Monex SAB and Samsung Electronics

If you would invest  2,000  in Monex SAB de on September 29, 2024 and sell it today you would earn a total of  0.00  from holding Monex SAB de or generate 0.0% return on investment over 90 days.

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

Monex SAB de  vs.  Samsung Electronics Co

Monex SAB de

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Monex SAB de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Monex SAB is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

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. In spite of weak performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Monex SAB and Samsung Electronics

The main advantage of trading using opposite Monex SAB and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monex SAB 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.

The idea behind Monex SAB de and Samsung Electronics 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.