Correlation Between Samsung Electronics and Odyssean Investment
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Odyssean Investment 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 Odyssean Investment 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 Odyssean Investment Trust, you can compare the effects of market volatilities on Samsung Electronics and Odyssean Investment 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 Odyssean Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Odyssean Investment.
Diversification Opportunities for Samsung Electronics and Odyssean Investment
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Samsung and Odyssean is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Odyssean Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Odyssean Investment Trust 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 Odyssean Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Odyssean Investment Trust has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Odyssean Investment go up and down completely randomly.
Pair Corralation between Samsung Electronics and Odyssean Investment
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Odyssean Investment. In addition to that, Samsung Electronics is 1.5 times more volatile than Odyssean Investment Trust. It trades about -0.35 of its total potential returns per unit of risk. Odyssean Investment Trust is currently generating about -0.11 per unit of volatility. If you would invest 15,650 in Odyssean Investment Trust on September 25, 2024 and sell it today you would lose (450.00) from holding Odyssean Investment Trust or give up 2.88% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Samsung Electronics Co vs. Odyssean Investment Trust
Performance |
Timeline |
Samsung Electronics |
Odyssean Investment Trust |
Samsung Electronics and Odyssean Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samsung Electronics and Odyssean Investment
The main advantage of trading using opposite Samsung Electronics and Odyssean Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Odyssean Investment 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 Odyssean Investment will offset losses from the drop in Odyssean Investment's long position.Samsung Electronics vs. Blackrock World Mining | Samsung Electronics vs. Southern Copper Corp | Samsung Electronics vs. European Metals Holdings | Samsung Electronics vs. AMG Advanced Metallurgical |
Odyssean Investment vs. Samsung Electronics Co | Odyssean Investment vs. Samsung Electronics Co | Odyssean Investment vs. Hyundai Motor | Odyssean Investment vs. Toyota Motor Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Content Syndication Quickly integrate customizable finance content to your own investment portal |