Correlation Between Medpace Holdings and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Medpace Holdings 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 Medpace Holdings and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medpace Holdings and Samsung Electronics Co, you can compare the effects of market volatilities on Medpace Holdings 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 Medpace Holdings with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medpace Holdings and Samsung Electronics.
Diversification Opportunities for Medpace Holdings and Samsung Electronics
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Medpace and Samsung is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Medpace Holdings and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Medpace Holdings 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 Medpace Holdings 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 Medpace Holdings i.e., Medpace Holdings and Samsung Electronics go up and down completely randomly.
Pair Corralation between Medpace Holdings and Samsung Electronics
Given the investment horizon of 90 days Medpace Holdings is expected to generate 0.37 times more return on investment than Samsung Electronics. However, Medpace Holdings is 2.73 times less risky than Samsung Electronics. It trades about 0.0 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.2 per unit of risk. If you would invest 59,402 in Medpace Holdings on September 2, 2025 and sell it today you would lose (156.00) from holding Medpace Holdings or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medpace Holdings vs. Samsung Electronics Co
Performance |
| Timeline |
| Medpace Holdings |
| Samsung Electronics |
Medpace Holdings and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medpace Holdings and Samsung Electronics
The main advantage of trading using opposite Medpace Holdings and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medpace Holdings 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.| Medpace Holdings vs. Jones Soda Co | Medpace Holdings vs. ScanSource | Medpace Holdings vs. Monster Beverage Corp | Medpace Holdings vs. Boston Beer |
| Samsung Electronics vs. Information Services International Dentsu | Samsung Electronics vs. Cars Inc | Samsung Electronics vs. GEELY AUTOMOBILE | Samsung Electronics vs. INTER CARS SA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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