Correlation Between Samsung Electronics and Renesas Electronics
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Renesas 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 Samsung Electronics and Renesas Electronics 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 Renesas Electronics, you can compare the effects of market volatilities on Samsung Electronics and Renesas 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 Samsung Electronics with a short position of Renesas Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Renesas Electronics.
Diversification Opportunities for Samsung Electronics and Renesas Electronics
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Renesas is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Renesas Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renesas Electronics 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 Renesas Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renesas Electronics has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Renesas Electronics go up and down completely randomly.
Pair Corralation between Samsung Electronics and Renesas Electronics
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 1.0 times more return on investment than Renesas Electronics. However, Samsung Electronics Co is 1.0 times less risky than Renesas Electronics. It trades about 0.16 of its potential returns per unit of risk. Renesas Electronics is currently generating about 0.04 per unit of risk. If you would invest 87,700 in Samsung Electronics Co on August 20, 2025 and sell it today you would earn a total of 26,300 from holding Samsung Electronics Co or generate 29.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Renesas Electronics
Performance |
| Timeline |
| Samsung Electronics |
| Renesas Electronics |
Samsung Electronics and Renesas Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Renesas Electronics
The main advantage of trading using opposite Samsung Electronics and Renesas Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Renesas 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 Renesas Electronics will offset losses from the drop in Renesas Electronics' long position.| Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Apple Inc | Samsung Electronics vs. Samsung Electronics Co | Samsung Electronics vs. Xiaomi |
| Renesas Electronics vs. NVIDIA | Renesas Electronics vs. Taiwan Semiconductor Manufacturing | Renesas Electronics vs. Intel | Renesas Electronics vs. BANK HANDLOWY |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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