Correlation Between Naturhouse Health and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Naturhouse Health 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 Naturhouse Health and Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naturhouse Health SA and Samsung Electronics Co, you can compare the effects of market volatilities on Naturhouse Health 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 Naturhouse Health with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naturhouse Health and Samsung Electronics.
Diversification Opportunities for Naturhouse Health and Samsung Electronics
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Naturhouse and Samsung is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Naturhouse Health SA and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and Naturhouse Health 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 Naturhouse Health SA 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 Naturhouse Health i.e., Naturhouse Health and Samsung Electronics go up and down completely randomly.
Pair Corralation between Naturhouse Health and Samsung Electronics
Assuming the 90 days trading horizon Naturhouse Health SA is expected to generate 2.39 times more return on investment than Samsung Electronics. However, Naturhouse Health is 2.39 times more volatile than Samsung Electronics Co. It trades about 0.03 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about -0.02 per unit of risk. If you would invest 153.00 in Naturhouse Health SA on October 14, 2024 and sell it today you would earn a total of 19.00 from holding Naturhouse Health SA or generate 12.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.37% |
| Values | Daily Returns |
Naturhouse Health SA vs. Samsung Electronics Co
Performance |
| Timeline |
| Naturhouse Health |
| Samsung Electronics |
Naturhouse Health and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naturhouse Health and Samsung Electronics
The main advantage of trading using opposite Naturhouse Health and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naturhouse Health 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.| Naturhouse Health vs. CNH Industrial NV | Naturhouse Health vs. Ecofin Global Utilities | Naturhouse Health vs. Cornish Metals | Naturhouse Health vs. Erste Group Bank |
| Samsung Electronics vs. Eco Animal Health | Samsung Electronics vs. Naturhouse Health SA | Samsung Electronics vs. First Class Metals | Samsung Electronics vs. Universal Music 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |