Correlation Between Fortune Brands and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Fortune Brands and Samsung Electronics 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 Fortune Brands and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortune Brands Home and Samsung Electronics Co, you can compare the effects of market volatilities on Fortune Brands and Samsung Electronics 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 Fortune Brands with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortune Brands and Samsung Electronics.
Diversification Opportunities for Fortune Brands and Samsung Electronics
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fortune and Samsung is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fortune Brands Home and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Fortune Brands 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 Fortune Brands Home are associated (or correlated) with Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Fortune Brands i.e., Fortune Brands and Samsung Electronics go up and down completely randomly.
Pair Corralation between Fortune Brands and Samsung Electronics
Assuming the 90 days trading horizon Fortune Brands Home is expected to under-perform the Samsung Electronics. In addition to that, Fortune Brands is 1.05 times more volatile than Samsung Electronics Co. It trades about -0.08 of its total potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.2 per unit of volatility. If you would invest 134,721 in Samsung Electronics Co on September 12, 2025 and sell it today you would earn a total of 47,679 from holding Samsung Electronics Co or generate 35.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.69% |
| Values | Daily Returns |
Fortune Brands Home vs. Samsung Electronics Co
Performance |
| Timeline |
| Fortune Brands Home |
| Samsung Electronics |
Fortune Brands and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortune Brands and Samsung Electronics
The main advantage of trading using opposite Fortune Brands and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortune Brands position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Fortune Brands vs. China Pacific Insurance | Fortune Brands vs. Jacquet Metal Service | Fortune Brands vs. Taiwan Semiconductor Manufacturing | Fortune Brands vs. Metlen Energy Metals |
| Samsung Electronics vs. Inspiration Healthcare Group | Samsung Electronics vs. Abingdon Health Plc | Samsung Electronics vs. Omega Healthcare Investors | Samsung Electronics vs. CVS Health Corp |
Check out your portfolio center.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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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