Correlation Between Samsung Electronics and Maptelligent

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

Diversification Opportunities for Samsung Electronics and Maptelligent

-0.37

Correlation Coefficient

Samsung Electronics  Maptelligent

Very good diversification

The 3 months correlation between Samsung and Maptelligent is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Maptelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maptelligent 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 Maptelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maptelligent has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Maptelligent go up and down completely randomly.

Pair Corralation between Samsung Electronics and Maptelligent

Assuming the 90 days horizon Samsung Electronics is expected to generate 153.85 times less return on investment than Maptelligent. But when comparing it to its historical volatility, Samsung Electronics Co is 319.8 times less risky than Maptelligent. It trades about 0.13 of its potential returns per unit of risk. Maptelligent is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  0.05  in Maptelligent on September 22, 2024 and sell it today you would lose (0.02) from holding Maptelligent or give up 40.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Samsung Electronics Co  vs.  Maptelligent

Samsung Electronics

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Samsung Electronics Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Samsung Electronics is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Maptelligent

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Maptelligent are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Maptelligent unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Samsung Electronics and Maptelligent

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

The idea behind Samsung Electronics Co and Maptelligent 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.