Correlation Between NICE Information and Samsung Biologics
Can any of the company-specific risk be diversified away by investing in both NICE Information and Samsung Biologics 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 NICE Information and Samsung Biologics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NICE Information Service and Samsung Biologics Co, you can compare the effects of market volatilities on NICE Information and Samsung Biologics 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 NICE Information with a short position of Samsung Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NICE Information and Samsung Biologics.
Diversification Opportunities for NICE Information and Samsung Biologics
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NICE and Samsung is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding NICE Information Service and Samsung Biologics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Biologics and NICE Information 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 NICE Information Service are associated (or correlated) with Samsung Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Biologics has no effect on the direction of NICE Information i.e., NICE Information and Samsung Biologics go up and down completely randomly.
Pair Corralation between NICE Information and Samsung Biologics
Assuming the 90 days trading horizon NICE Information is expected to generate 1.13 times less return on investment than Samsung Biologics. In addition to that, NICE Information is 1.13 times more volatile than Samsung Biologics Co. It trades about 0.07 of its total potential returns per unit of risk. Samsung Biologics Co is currently generating about 0.08 per unit of volatility. If you would invest 70,400,000 in Samsung Biologics Co on September 14, 2024 and sell it today you would earn a total of 25,400,000 from holding Samsung Biologics Co or generate 36.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NICE Information Service vs. Samsung Biologics Co
Performance |
| Timeline |
| NICE Information Service |
| Samsung Biologics |
NICE Information and Samsung Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NICE Information and Samsung Biologics
The main advantage of trading using opposite NICE Information and Samsung Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NICE Information position performs unexpectedly, Samsung Biologics 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 Biologics will offset losses from the drop in Samsung Biologics' long position.| NICE Information vs. AptaBio Therapeutics | NICE Information vs. Daewoo SBI SPAC | NICE Information vs. Dream Security co | NICE Information vs. Microfriend |
| Samsung Biologics vs. InnoTherapy | Samsung Biologics vs. Osang Healthcare Co,Ltd | Samsung Biologics vs. Green Cross Medical | Samsung Biologics vs. Clean Science co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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