Correlation Between Revolution Beauty and Samsung Electronics

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

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

Diversification Opportunities for Revolution Beauty and Samsung Electronics

-0.63

Correlation Coefficient

Revolution Beauty  Samsung Electronics

Excellent diversification

The 3 months correlation between Revolution and Samsung is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Revolution Beauty Group and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Revolution Beauty 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 Revolution Beauty Group 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 Revolution Beauty i.e., Revolution Beauty and Samsung Electronics go up and down completely randomly.

Pair Corralation between Revolution Beauty and Samsung Electronics

Assuming the 90 days trading horizon Revolution Beauty Group is expected to under-perform the Samsung Electronics. In addition to that, Revolution Beauty is 4.99 times more volatile than Samsung Electronics Co. It trades about -0.05 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.21 per unit of volatility. If you would invest  97,900  in Samsung Electronics Co on April 23, 2025 and sell it today you would earn a total of  24,800  from holding Samsung Electronics Co or generate 25.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Revolution Beauty Group  vs.  Samsung Electronics Co

Revolution Beauty

Risk-Adjusted Performance

Very Weak

Over the last 90 days Revolution Beauty Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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. In spite of comparatively uncertain basic indicators, Samsung Electronics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Revolution Beauty and Samsung Electronics

The main advantage of trading using opposite Revolution Beauty and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revolution Beauty 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 Revolution Beauty Group 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.