Correlation Between Samsung Electronics and EMPEROR ENT

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

Diversification Opportunities for Samsung Electronics and EMPEROR ENT

-0.22

Correlation Coefficient

Samsung Electronics  EMPEROR ENT

Very good diversification

The 3 months correlation between Samsung and EMPEROR is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and EMPEROR ENT HOTEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMPEROR ENT HOTEL 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 EMPEROR ENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMPEROR ENT HOTEL has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and EMPEROR ENT go up and down completely randomly.

Pair Corralation between Samsung Electronics and EMPEROR ENT

Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 0.43 times more return on investment than EMPEROR ENT. However, Samsung Electronics Co is 2.33 times less risky than EMPEROR ENT. It trades about 0.14 of its potential returns per unit of risk. EMPEROR ENT HOTEL is currently generating about 0.03 per unit of risk. If you would invest  71,400  in Samsung Electronics Co on April 23, 2025 and sell it today you would earn a total of  12,400  from holding Samsung Electronics Co or generate 17.37% return on investment over 90 days.

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

Samsung Electronics Co  vs.  EMPEROR ENT HOTEL

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 11 (%) 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.

EMPEROR ENT HOTEL

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EMPEROR ENT HOTEL are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, EMPEROR ENT may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Samsung Electronics and EMPEROR ENT

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

The idea behind Samsung Electronics Co and EMPEROR ENT HOTEL 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..