Correlation Between Judges Scientific and Samsung Electronics

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

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

Diversification Opportunities for Judges Scientific and Samsung Electronics

0.68

Correlation Coefficient

Judges Scientific  Samsung Electronics

Poor diversification

The 3 months correlation between Judges and Samsung is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Judges Scientific Plc and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Judges Scientific 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 Judges Scientific Plc 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 Judges Scientific i.e., Judges Scientific and Samsung Electronics go up and down completely randomly.

Pair Corralation between Judges Scientific and Samsung Electronics

Assuming the 90 days trading horizon Judges Scientific Plc is expected to generate 1.45 times more return on investment than Samsung Electronics. However, Judges Scientific is 1.45 times more volatile than Samsung Electronics Co. It trades about 0.19 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.2 per unit of risk. If you would invest  623,616  in Judges Scientific Plc on April 23, 2025 and sell it today you would earn a total of  190,384  from holding Judges Scientific Plc or generate 30.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Judges Scientific Plc  vs.  Samsung Electronics Co

Judges Scientific Plc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Judges Scientific Plc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Judges Scientific exhibited solid returns over the last few months and may actually be approaching a breakup point.

Samsung Electronics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Samsung Electronics Co are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain essential indicators, Samsung Electronics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Judges Scientific and Samsung Electronics

The main advantage of trading using opposite Judges Scientific and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Judges Scientific 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 Judges Scientific Plc 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.