Correlation Between Spineguard and NSC Groupe

Can any of the company-specific risk be diversified away by investing in both Spineguard and NSC Groupe 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 Spineguard and NSC Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Spineguard and NSC Groupe SA, you can compare the effects of market volatilities on Spineguard and NSC Groupe 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 Spineguard with a short position of NSC Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spineguard and NSC Groupe.

Diversification Opportunities for Spineguard and NSC Groupe

-0.44

Correlation Coefficient

Spineguard  NSC Groupe

Very good diversification

The 3 months correlation between Spineguard and NSC is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Spineguard and NSC Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSC Groupe SA and Spineguard 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 Spineguard are associated (or correlated) with NSC Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSC Groupe SA has no effect on the direction of Spineguard i.e., Spineguard and NSC Groupe go up and down completely randomly.

Pair Corralation between Spineguard and NSC Groupe

Assuming the 90 days trading horizon Spineguard is expected to under-perform the NSC Groupe. In addition to that, Spineguard is 2.08 times more volatile than NSC Groupe SA. It trades about -0.06 of its total potential returns per unit of risk. NSC Groupe SA is currently generating about 0.11 per unit of volatility. If you would invest  6,350  in NSC Groupe SA on April 25, 2025 and sell it today you would earn a total of  1,100  from holding NSC Groupe SA or generate 17.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Spineguard  vs.  NSC Groupe SA

Spineguard

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spineguard has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

NSC Groupe SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NSC Groupe SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, NSC Groupe reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Spineguard and NSC Groupe

The main advantage of trading using opposite Spineguard and NSC Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spineguard position performs unexpectedly, NSC Groupe 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 NSC Groupe will offset losses from the drop in NSC Groupe's long position.

The idea behind Spineguard and NSC Groupe SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.