Correlation Between Samsung Electronics and Intermediate Capital

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

Diversification Opportunities for Samsung Electronics and Intermediate Capital

0.71

Correlation Coefficient

Samsung Electronics  Intermediate Capital

Poor diversification

The 3 months correlation between Samsung and Intermediate is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital 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 Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Intermediate Capital go up and down completely randomly.

Pair Corralation between Samsung Electronics and Intermediate Capital

Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.06 times more return on investment than Intermediate Capital. However, Samsung Electronics is 1.06 times more volatile than Intermediate Capital Group. It trades about 0.2 of its potential returns per unit of risk. Intermediate Capital Group is currently generating about 0.17 per unit of risk. If you would invest  97,300  in Samsung Electronics Co on April 24, 2025 and sell it today you would earn a total of  23,700  from holding Samsung Electronics Co or generate 24.36% return on investment over 90 days.

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

Samsung Electronics Co  vs.  Intermediate Capital Group

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 unsteady basic indicators, Samsung Electronics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Intermediate Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intermediate Capital Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Intermediate Capital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Samsung Electronics and Intermediate Capital

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

The idea behind Samsung Electronics Co and Intermediate Capital Group 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.