Correlation Between Samsung Electronics and AALBERTS IND

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

Diversification Opportunities for Samsung Electronics and AALBERTS IND

0.67

Correlation Coefficient

Samsung Electronics  AALBERTS IND

Poor diversification

The 3 months correlation between Samsung and AALBERTS is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and AALBERTS IND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AALBERTS IND 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 AALBERTS IND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AALBERTS IND has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and AALBERTS IND go up and down completely randomly.

Pair Corralation between Samsung Electronics and AALBERTS IND

Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.21 times more return on investment than AALBERTS IND. However, Samsung Electronics is 1.21 times more volatile than AALBERTS IND. It trades about 0.13 of its potential returns per unit of risk. AALBERTS IND is currently generating about 0.12 per unit of risk. If you would invest  71,500  in Samsung Electronics Co on April 25, 2025 and sell it today you would earn a total of  11,700  from holding Samsung Electronics Co or generate 16.36% 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.  AALBERTS IND

Samsung Electronics

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Samsung Electronics Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Samsung Electronics reported solid returns over the last few months and may actually be approaching a breakup point.

AALBERTS IND

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AALBERTS IND are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, AALBERTS IND may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Samsung Electronics and AALBERTS IND

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

The idea behind Samsung Electronics Co and AALBERTS IND 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.