Correlation Between Samsung Electronics and TOTAL BANGUN

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

Diversification Opportunities for Samsung Electronics and TOTAL BANGUN

-0.75

Correlation Coefficient

Samsung Electronics  TOTAL BANGUN

Pay attention - limited upside

The 3 months correlation between Samsung and TOTAL is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and TOTAL BANGUN PERSAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL BANGUN PERSAD 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 TOTAL BANGUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL BANGUN PERSAD has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and TOTAL BANGUN go up and down completely randomly.

Pair Corralation between Samsung Electronics and TOTAL BANGUN

Assuming the 90 days horizon Samsung Electronics Co is expected to under-perform the TOTAL BANGUN. In addition to that, Samsung Electronics is 2.41 times more volatile than TOTAL BANGUN PERSAD. It trades about -0.16 of its total potential returns per unit of risk. TOTAL BANGUN PERSAD is currently generating about 0.22 per unit of volatility. If you would invest  3.20  in TOTAL BANGUN PERSAD on September 4, 2024 and sell it today you would earn a total of  0.45  from holding TOTAL BANGUN PERSAD or generate 14.06% return on investment over 90 days.

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

Samsung Electronics Co  vs.  TOTAL BANGUN PERSAD

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

TOTAL BANGUN PERSAD

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TOTAL BANGUN PERSAD are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, TOTAL BANGUN unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Samsung Electronics and TOTAL BANGUN

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

The idea behind Samsung Electronics Co and TOTAL BANGUN PERSAD 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.