Correlation Between Martifer SGPS and NOS SGPS
Can any of the company-specific risk be diversified away by investing in both Martifer SGPS and NOS SGPS 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 Martifer SGPS and NOS SGPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martifer SGPS SA and NOS SGPS SA, you can compare the effects of market volatilities on Martifer SGPS and NOS SGPS 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 Martifer SGPS with a short position of NOS SGPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martifer SGPS and NOS SGPS.
Diversification Opportunities for Martifer SGPS and NOS SGPS
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Martifer and NOS is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Martifer SGPS SA and NOS SGPS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOS SGPS SA and Martifer SGPS 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 Martifer SGPS SA are associated (or correlated) with NOS SGPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOS SGPS SA has no effect on the direction of Martifer SGPS i.e., Martifer SGPS and NOS SGPS go up and down completely randomly.
Pair Corralation between Martifer SGPS and NOS SGPS
Assuming the 90 days trading horizon Martifer SGPS SA is expected to under-perform the NOS SGPS. In addition to that, Martifer SGPS is 1.22 times more volatile than NOS SGPS SA. It trades about -0.08 of its total potential returns per unit of risk. NOS SGPS SA is currently generating about -0.02 per unit of volatility. If you would invest 377.00 in NOS SGPS SA on April 23, 2025 and sell it today you would lose (2.00) from holding NOS SGPS SA or give up 0.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Martifer SGPS SA vs. NOS SGPS SA
Performance |
Timeline |
Martifer SGPS SA |
NOS SGPS SA |
Martifer SGPS and NOS SGPS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Martifer SGPS and NOS SGPS
The main advantage of trading using opposite Martifer SGPS and NOS SGPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martifer SGPS position performs unexpectedly, NOS SGPS 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 NOS SGPS will offset losses from the drop in NOS SGPS's long position.Martifer SGPS vs. Mota Engil SGPS SA | Martifer SGPS vs. Impresa Sociedade | Martifer SGPS vs. Teixeira Duarte | Martifer SGPS vs. Altri SGPS 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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