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
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spineguard and NSC is -0.38. 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 6.41 times more volatile than NSC Groupe SA. It trades about -0.21 of its total potential returns per unit of risk. NSC Groupe SA is currently generating about 0.04 per unit of volatility. If you would invest 7,400 in NSC Groupe SA on April 23, 2025 and sell it today you would earn a total of 50.00 from holding NSC Groupe SA or generate 0.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Spineguard vs. NSC Groupe SA
Performance |
Timeline |
Spineguard |
NSC Groupe SA |
Spineguard and NSC Groupe Volatility Contrast
Predicted Return Density |
Returns |
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.Spineguard vs. Abivax SA | Spineguard vs. Sensorion SA | Spineguard vs. Gensight Biologics SA | Spineguard vs. Transgene SA |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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