Correlation Between Samsung Electronics and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Neuberger Berman 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 Neuberger Berman 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 Neuberger Berman New, you can compare the effects of market volatilities on Samsung Electronics and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Neuberger Berman.
Diversification Opportunities for Samsung Electronics and Neuberger Berman
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Neuberger is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Neuberger Berman New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman New 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman New has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Neuberger Berman go up and down completely randomly.
Pair Corralation between Samsung Electronics and Neuberger Berman
If you would invest 3,979 in Samsung Electronics Co on September 1, 2024 and sell it today you would earn a total of 81.00 from holding Samsung Electronics Co or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Samsung Electronics Co vs. Neuberger Berman New
Performance |
| Timeline |
| Samsung Electronics |
| Neuberger Berman New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Neuberger Berman
The main advantage of trading using opposite Samsung Electronics and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman's long position.| Samsung Electronics vs. Universal Electronics | Samsung Electronics vs. Vizio Holding Corp | Samsung Electronics vs. VOXX International | Samsung Electronics vs. Sony Group Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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