Correlation Between Samsung Electronics and SIEM OFFSHORE

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

Diversification Opportunities for Samsung Electronics and SIEM OFFSHORE

0.76

Correlation Coefficient

Samsung Electronics  SIEM OFFSHORE

Poor diversification

The 3 months correlation between Samsung and SIEM is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW 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 SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and SIEM OFFSHORE go up and down completely randomly.

Pair Corralation between Samsung Electronics and SIEM OFFSHORE

Assuming the 90 days trading horizon Samsung Electronics is expected to generate 2.24 times less return on investment than SIEM OFFSHORE. But when comparing it to its historical volatility, Samsung Electronics Co is 1.59 times less risky than SIEM OFFSHORE. It trades about 0.16 of its potential returns per unit of risk. SIEM OFFSHORE NEW is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  145.00  in SIEM OFFSHORE NEW on April 21, 2025 and sell it today you would earn a total of  71.00  from holding SIEM OFFSHORE NEW or generate 48.97% 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.  SIEM OFFSHORE NEW

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 12 (%) 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.

SIEM OFFSHORE NEW

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SIEM OFFSHORE NEW are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, SIEM OFFSHORE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Samsung Electronics and SIEM OFFSHORE

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

The idea behind Samsung Electronics Co and SIEM OFFSHORE NEW 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.