Correlation Between Samsung Electronics and Uniper SE

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

Diversification Opportunities for Samsung Electronics and Uniper SE

-0.87

Correlation Coefficient

Samsung Electronics  Uniper SE

Pay attention - limited upside

The 3 months correlation between Samsung and Uniper is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Uniper SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniper SE 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 Uniper SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniper SE has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Uniper SE go up and down completely randomly.

Pair Corralation between Samsung Electronics and Uniper SE

Assuming the 90 days trading horizon Samsung Electronics Co is not expected to generate positive returns. However, Samsung Electronics Co is 1.5 times less risky than Uniper SE. It waists most of its returns potential to compensate for thr risk taken. Uniper SE is generating about -0.06 per unit of risk. If you would invest  131,768  in Samsung Electronics Co on April 20, 2025 and sell it today you would lose (11,468) from holding Samsung Electronics Co or give up 8.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	99.6%
Values	Daily Returns

Samsung Electronics Co  vs.  Uniper SE

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.

Uniper SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days Uniper SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Samsung Electronics and Uniper SE

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

The idea behind Samsung Electronics Co and Uniper SE 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.