Correlation Between Jde Peets and NN Group

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

By analyzing existing cross correlation between Jde Peets Nv and NN Group NV, you can compare the effects of market volatilities on Jde Peets and NN Group 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 Jde Peets with a short position of NN Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jde Peets and NN Group.

Diversification Opportunities for Jde Peets and NN Group

0.96

Correlation Coefficient

Jde Peets  NN Group

Almost no diversification

The 3 months correlation between Jde and NN Group is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jde Peets Nv and NN Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NN Group NV and Jde Peets 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 Jde Peets Nv are associated (or correlated) with NN Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NN Group NV has no effect on the direction of Jde Peets i.e., Jde Peets and NN Group go up and down completely randomly.

Pair Corralation between Jde Peets and NN Group

Assuming the 90 days trading horizon Jde Peets Nv is expected to generate 1.4 times more return on investment than NN Group. However, Jde Peets is 1.4 times more volatile than NN Group NV. It trades about 0.23 of its potential returns per unit of risk. NN Group NV is currently generating about 0.3 per unit of risk. If you would invest  2,062  in Jde Peets Nv on April 23, 2025 and sell it today you would earn a total of  330.00  from holding Jde Peets Nv or generate 16.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Jde Peets Nv  vs.  NN Group NV

Jde Peets Nv

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jde Peets Nv are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Jde Peets unveiled solid returns over the last few months and may actually be approaching a breakup point.

NN Group NV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in NN Group NV are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, NN Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jde Peets and NN Group

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

The idea behind Jde Peets Nv and NN Group NV 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.