Correlation Between Samsung Electronics and Secure Property

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

Diversification Opportunities for Samsung Electronics and Secure Property

0.46

Correlation Coefficient

Samsung Electronics  Secure Property

Very weak diversification

The 3 months correlation between Samsung and Secure is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Secure Property Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secure Property Deve 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 Secure Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secure Property Deve has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Secure Property go up and down completely randomly.

Pair Corralation between Samsung Electronics and Secure Property

Assuming the 90 days trading horizon Samsung Electronics is expected to generate 2.23 times less return on investment than Secure Property. But when comparing it to its historical volatility, Samsung Electronics Co is 4.79 times less risky than Secure Property. It trades about 0.24 of its potential returns per unit of risk. Secure Property Development is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  375.00  in Secure Property Development on April 23, 2025 and sell it today you would earn a total of  175.00  from holding Secure Property Development or generate 46.67% return on investment over 90 days.

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

Samsung Electronics Co  vs.  Secure Property Development

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 18 (%) 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.

Secure Property Deve

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Secure Property Development are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Secure Property unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Samsung Electronics and Secure Property

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

The idea behind Samsung Electronics Co and Secure Property Development 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.