Correlation Between AurosTechnology and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both AurosTechnology 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 AurosTechnology and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AurosTechnology and Samsung Electronics Co, you can compare the effects of market volatilities on AurosTechnology 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 AurosTechnology with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AurosTechnology and Samsung Electronics.
Diversification Opportunities for AurosTechnology and Samsung Electronics
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AurosTechnology and Samsung is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding AurosTechnology and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and AurosTechnology 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 AurosTechnology 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 AurosTechnology i.e., AurosTechnology and Samsung Electronics go up and down completely randomly.
Pair Corralation between AurosTechnology and Samsung Electronics
Assuming the 90 days trading horizon AurosTechnology is expected to under-perform the Samsung Electronics. In addition to that, AurosTechnology is 2.17 times more volatile than Samsung Electronics Co. It trades about -0.1 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.12 per unit of volatility. If you would invest 8,412,479 in Samsung Electronics Co on July 6, 2024 and sell it today you would lose (2,352,479) from holding Samsung Electronics Co or give up 27.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
AurosTechnology vs. Samsung Electronics Co
Performance |
Timeline |
AurosTechnology |
Samsung Electronics |
AurosTechnology and Samsung Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AurosTechnology and Samsung Electronics
The main advantage of trading using opposite AurosTechnology and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AurosTechnology 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.AurosTechnology vs. LG Household Healthcare | AurosTechnology vs. Automobile Pc | AurosTechnology vs. Chorokbaem Healthcare Co | AurosTechnology vs. RF Materials Co |
Samsung Electronics vs. Korea New Network | Samsung Electronics vs. Dreamus Company | Samsung Electronics vs. SK Bioscience Co | Samsung Electronics vs. MEDICOX Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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