Correlation Between Samsung Electronics and Shyft

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

Diversification Opportunities for Samsung Electronics and Shyft

-0.42

Correlation Coefficient

Samsung Electronics  Shyft

Very good diversification

The 3 months correlation between Samsung and Shyft is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and The Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group 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 Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Shyft go up and down completely randomly.

Pair Corralation between Samsung Electronics and Shyft

Assuming the 90 days horizon Samsung Electronics Co is expected to generate 0.17 times more return on investment than Shyft. However, Samsung Electronics Co is 5.96 times less risky than Shyft. It trades about 0.12 of its potential returns per unit of risk. The Shyft Group is currently generating about -0.05 per unit of risk. If you would invest  85,800  in Samsung Electronics Co on April 23, 2025 and sell it today you would earn a total of  14,700  from holding Samsung Electronics Co or generate 17.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.75%
Values	Daily Returns

Samsung Electronics Co  vs.  The Shyft 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 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Samsung Electronics reported solid returns over the last few months and may actually be approaching a breakup point.

Shyft Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Shyft Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Samsung Electronics and Shyft

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

The idea behind Samsung Electronics Co and The Shyft 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.