Correlation Between Samsung Electronics and Ashtead Group

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

Diversification Opportunities for Samsung Electronics and Ashtead Group

0.88

Correlation Coefficient

Samsung Electronics  Ashtead Group

Very poor diversification

The 3 months correlation between Samsung and Ashtead is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Ashtead Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtead Group PLC 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 Ashtead Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashtead Group PLC has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Ashtead Group go up and down completely randomly.

Pair Corralation between Samsung Electronics and Ashtead Group

Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.91 times more return on investment than Ashtead Group. However, Samsung Electronics Co is 1.1 times less risky than Ashtead Group. It trades about 0.2 of its potential returns per unit of risk. Ashtead Group PLC is currently generating about 0.13 per unit of risk. If you would invest  80,866  in Samsung Electronics Co on April 24, 2025 and sell it today you would earn a total of  17,534  from holding Samsung Electronics Co or generate 21.68% return on investment over 90 days.

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

Samsung Electronics Co  vs.  Ashtead Group PLC

Samsung Electronics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Samsung Electronics Co are ranked lower than 15 (%) 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.

Ashtead Group PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ashtead Group PLC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Ashtead Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Samsung Electronics and Ashtead Group

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

The idea behind Samsung Electronics Co and Ashtead Group PLC 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.