Correlation Between ICU MEDICAL and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both ICU MEDICAL 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 ICU MEDICAL and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICU MEDICAL and Samsung Electronics Co, you can compare the effects of market volatilities on ICU MEDICAL 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 ICU MEDICAL with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICU MEDICAL and Samsung Electronics.
Diversification Opportunities for ICU MEDICAL and Samsung Electronics
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICU and Samsung is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding ICU MEDICAL and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and ICU MEDICAL 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 ICU MEDICAL 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 ICU MEDICAL i.e., ICU MEDICAL and Samsung Electronics go up and down completely randomly.
Pair Corralation between ICU MEDICAL and Samsung Electronics
Assuming the 90 days trading horizon ICU MEDICAL is expected to generate 1.28 times less return on investment than Samsung Electronics. But when comparing it to its historical volatility, ICU MEDICAL is 1.25 times less risky than Samsung Electronics. It trades about 0.13 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 87,001 in Samsung Electronics Co on August 28, 2025 and sell it today you would earn a total of 20,599 from holding Samsung Electronics Co or generate 23.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICU MEDICAL vs. Samsung Electronics Co
Performance |
| Timeline |
| ICU MEDICAL |
| Samsung Electronics |
ICU MEDICAL and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICU MEDICAL and Samsung Electronics
The main advantage of trading using opposite ICU MEDICAL and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU MEDICAL 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.| ICU MEDICAL vs. NEW MILLENNIUM IRON | ICU MEDICAL vs. Veolia Environnement SA | ICU MEDICAL vs. MOUNT GIBSON IRON | ICU MEDICAL vs. Global Ship Lease |
| Samsung Electronics vs. Atresmedia Corporacin de | Samsung Electronics vs. CN MODERN DAIRY | Samsung Electronics vs. Galaxy Entertainment Group | Samsung Electronics vs. MTY Food Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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