Correlation Between NOS SGPS and Futebol Clube
Can any of the company-specific risk be diversified away by investing in both NOS SGPS and Futebol Clube 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 NOS SGPS and Futebol Clube into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NOS SGPS SA and Futebol Clube do, you can compare the effects of market volatilities on NOS SGPS and Futebol Clube 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 NOS SGPS with a short position of Futebol Clube. Check out your portfolio center. Please also check ongoing floating volatility patterns of NOS SGPS and Futebol Clube.
Diversification Opportunities for NOS SGPS and Futebol Clube
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NOS and Futebol is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding NOS SGPS SA and Futebol Clube do in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futebol Clube do and NOS 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 NOS SGPS SA are associated (or correlated) with Futebol Clube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futebol Clube do has no effect on the direction of NOS SGPS i.e., NOS SGPS and Futebol Clube go up and down completely randomly.
Pair Corralation between NOS SGPS and Futebol Clube
Assuming the 90 days trading horizon NOS SGPS SA is expected to under-perform the Futebol Clube. But the stock apears to be less risky and, when comparing its historical volatility, NOS SGPS SA is 4.21 times less risky than Futebol Clube. The stock trades about -0.07 of its potential returns per unit of risk. The Futebol Clube do is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 102.00 in Futebol Clube do on April 24, 2025 and sell it today you would earn a total of 16.00 from holding Futebol Clube do or generate 15.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
NOS SGPS SA vs. Futebol Clube do
Performance |
Timeline |
NOS SGPS SA |
Futebol Clube do |
NOS SGPS and Futebol Clube Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NOS SGPS and Futebol Clube
The main advantage of trading using opposite NOS SGPS and Futebol Clube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NOS SGPS position performs unexpectedly, Futebol Clube 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 Futebol Clube will offset losses from the drop in Futebol Clube's long position.NOS SGPS vs. Sonae SGPS SA | NOS SGPS vs. The Navigator | NOS SGPS vs. Galp Energia SGPS | NOS SGPS vs. REN Redes |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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