Correlation Between Samsung Electronics and NB Private
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and NB Private 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 NB Private 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 NB Private Equity, you can compare the effects of market volatilities on Samsung Electronics and NB Private 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 NB Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and NB Private.
Diversification Opportunities for Samsung Electronics and NB Private
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Samsung and NBPU is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and NB Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NB Private Equity 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 NB Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NB Private Equity has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and NB Private go up and down completely randomly.
Pair Corralation between Samsung Electronics and NB Private
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 2.59 times more return on investment than NB Private. However, Samsung Electronics is 2.59 times more volatile than NB Private Equity. It trades about 0.2 of its potential returns per unit of risk. NB Private Equity is currently generating about 0.17 per unit of risk. If you would invest 100,931 in Samsung Electronics Co on September 4, 2025 and sell it today you would earn a total of 31,569 from holding Samsung Electronics Co or generate 31.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. NB Private Equity
Performance |
| Timeline |
| Samsung Electronics |
| NB Private Equity |
Samsung Electronics and NB Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and NB Private
The main advantage of trading using opposite Samsung Electronics and NB Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, NB Private 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 NB Private will offset losses from the drop in NB Private's long position.| Samsung Electronics vs. Seraphim Space Investment | Samsung Electronics vs. Premier Foods PLC | Samsung Electronics vs. National Beverage Corp | Samsung Electronics vs. Conygar Investment Co |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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