Correlation Between NIGHTINGALE HEALTH and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both NIGHTINGALE 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 NIGHTINGALE 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 NIGHTINGALE HEALTH EO and Samsung Electronics Co, you can compare the effects of market volatilities on NIGHTINGALE 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 NIGHTINGALE HEALTH with a short position of Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIGHTINGALE HEALTH and Samsung Electronics.
Diversification Opportunities for NIGHTINGALE HEALTH and Samsung Electronics
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NIGHTINGALE and Samsung is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding NIGHTINGALE HEALTH EO and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics and NIGHTINGALE 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 NIGHTINGALE HEALTH EO 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 NIGHTINGALE HEALTH i.e., NIGHTINGALE HEALTH and Samsung Electronics go up and down completely randomly.
Pair Corralation between NIGHTINGALE HEALTH and Samsung Electronics
Assuming the 90 days horizon NIGHTINGALE HEALTH EO is expected to generate 2.24 times more return on investment than Samsung Electronics. However, NIGHTINGALE HEALTH is 2.24 times more volatile than Samsung Electronics Co. It trades about 0.07 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 108.00 in NIGHTINGALE HEALTH EO on October 27, 2024 and sell it today you would earn a total of 189.00 from holding NIGHTINGALE HEALTH EO or generate 175.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIGHTINGALE HEALTH EO vs. Samsung Electronics Co
Performance |
| Timeline |
| NIGHTINGALE HEALTH |
| Samsung Electronics |
NIGHTINGALE HEALTH and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIGHTINGALE HEALTH and Samsung Electronics
The main advantage of trading using opposite NIGHTINGALE HEALTH and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIGHTINGALE 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.| NIGHTINGALE HEALTH vs. GungHo Online Entertainment | NIGHTINGALE HEALTH vs. ZhongAn Online P | NIGHTINGALE HEALTH vs. CarsalesCom | NIGHTINGALE HEALTH vs. SALESFORCE INC CDR |
| Samsung Electronics vs. SPARTAN STORES | Samsung Electronics vs. Compagnie Plastic Omnium | Samsung Electronics vs. Burlington Stores | Samsung Electronics vs. Ross Stores |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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