Correlation Between NN Group and Rogers Communications
Can any of the company-specific risk be diversified away by investing in both NN Group and Rogers Communications 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 NN Group and Rogers Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NN Group NV and Rogers Communications, you can compare the effects of market volatilities on NN Group and Rogers Communications 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 NN Group with a short position of Rogers Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of NN Group and Rogers Communications.
Diversification Opportunities for NN Group and Rogers Communications
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between 2NN and Rogers is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding NN Group NV and Rogers Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rogers Communications and NN Group 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 NN Group NV are associated (or correlated) with Rogers Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rogers Communications has no effect on the direction of NN Group i.e., NN Group and Rogers Communications go up and down completely randomly.
Pair Corralation between NN Group and Rogers Communications
Assuming the 90 days horizon NN Group NV is expected to generate 1.3 times more return on investment than Rogers Communications. However, NN Group is 1.3 times more volatile than Rogers Communications. It trades about 0.04 of its potential returns per unit of risk. Rogers Communications is currently generating about -0.02 per unit of risk. If you would invest 3,384 in NN Group NV on September 3, 2024 and sell it today you would earn a total of 996.00 from holding NN Group NV or generate 29.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NN Group NV vs. Rogers Communications
Performance |
| Timeline |
| NN Group NV |
| Rogers Communications |
NN Group and Rogers Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NN Group and Rogers Communications
The main advantage of trading using opposite NN Group and Rogers Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NN Group position performs unexpectedly, Rogers Communications 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 Rogers Communications will offset losses from the drop in Rogers Communications' long position.| NN Group vs. Allianz SE | NN Group vs. Superior Plus Corp | NN Group vs. NMI Holdings | NN Group vs. Origin Agritech |
| Rogers Communications vs. Pembina Pipeline Corp | Rogers Communications vs. EHEALTH | Rogers Communications vs. CEOTRONICS | Rogers Communications vs. FEMALE HEALTH |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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