Correlation Between NV Nederlandsche and Signify NV

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

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

Diversification Opportunities for NV Nederlandsche and Signify NV

0.0

Correlation Coefficient

NV Nederlandsche  Signify NV

Pay attention - limited upside

The 3 months correlation between NEDAP and Signify is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NV Nederlandsche Apparatenfabr and Signify NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signify NV and NV Nederlandsche 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 NV Nederlandsche Apparatenfabriek are associated (or correlated) with Signify NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signify NV has no effect on the direction of NV Nederlandsche i.e., NV Nederlandsche and Signify NV go up and down completely randomly.

Pair Corralation between NV Nederlandsche and Signify NV

If you would invest (100.00) in Signify NV on April 14, 2025 and sell it today you would earn a total of  100.00  from holding Signify NV or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

NV Nederlandsche Apparatenfabr  vs.  Signify NV

NV Nederlandsche App

Risk-Adjusted Performance

Solid

Over the last 90 days NV Nederlandsche Apparatenfabriek has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NV Nederlandsche is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Signify NV

Risk-Adjusted Performance

Solid

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

Pair Trading with NV Nederlandsche and Signify NV

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

The idea behind NV Nederlandsche Apparatenfabriek and Signify 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.