Correlation Between Samsung Electronics and Nextgen Healthcare
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Nextgen Healthcare 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 Nextgen Healthcare 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 Nextgen Healthcare, you can compare the effects of market volatilities on Samsung Electronics and Nextgen Healthcare 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 Nextgen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Nextgen Healthcare.
Diversification Opportunities for Samsung Electronics and Nextgen Healthcare
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samsung and Nextgen is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Nextgen Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextgen Healthcare 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 Nextgen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextgen Healthcare has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Nextgen Healthcare go up and down completely randomly.
Pair Corralation between Samsung Electronics and Nextgen Healthcare
If you would invest 1,653 in Nextgen Healthcare on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Nextgen Healthcare or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Samsung Electronics Co vs. Nextgen Healthcare
Performance |
| Timeline |
| Samsung Electronics |
| Nextgen Healthcare |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Samsung Electronics and Nextgen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Nextgen Healthcare
The main advantage of trading using opposite Samsung Electronics and Nextgen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Nextgen Healthcare 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 Nextgen Healthcare will offset losses from the drop in Nextgen Healthcare'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 |
| Nextgen Healthcare vs. National Research Corp | Nextgen Healthcare vs. Definitive Healthcare Corp | Nextgen Healthcare vs. HealthStream | Nextgen Healthcare vs. Forian Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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