Correlation Between NN Group and Fugro NV
Can any of the company-specific risk be diversified away by investing in both NN Group and Fugro NV 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 NN Group and Fugro NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NN Group NV and Fugro NV, you can compare the effects of market volatilities on NN Group and Fugro NV 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 NN Group with a short position of Fugro NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of NN Group and Fugro NV.
Diversification Opportunities for NN Group and Fugro NV
Very weak diversification
The 3 months correlation between NN Group and Fugro is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding NN Group NV and Fugro NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fugro NV and NN Group 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 NN Group NV are associated (or correlated) with Fugro NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fugro NV has no effect on the direction of NN Group i.e., NN Group and Fugro NV go up and down completely randomly.
Pair Corralation between NN Group and Fugro NV
Assuming the 90 days horizon NN Group NV is expected to under-perform the Fugro NV. But the stock apears to be less risky and, when comparing its historical volatility, NN Group NV is 1.83 times less risky than Fugro NV. The stock trades about -0.41 of its potential returns per unit of risk. The Fugro NV is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,680 in Fugro NV on September 20, 2024 and sell it today you would lose (15.00) from holding Fugro NV or give up 0.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NN Group NV vs. Fugro NV
Performance |
Timeline |
NN Group NV |
Fugro NV |
NN Group and Fugro NV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NN Group and Fugro NV
The main advantage of trading using opposite NN Group and Fugro NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NN Group position performs unexpectedly, Fugro NV 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 Fugro NV will offset losses from the drop in Fugro NV's long position.NN Group vs. Eurocastle Investment | ||
NN Group vs. Kendrion NV | ||
NN Group vs. Brunel International NV | ||
NN Group vs. iShares MSCI USA |
Fugro NV vs. Aalberts Industries NV | ||
Fugro NV vs. SBM Offshore NV | ||
Fugro NV vs. NN Group NV | ||
Fugro NV vs. Randstad NV |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |