Correlation Between NSC Groupe and Impulse Fitness
Can any of the company-specific risk be diversified away by investing in both NSC Groupe and Impulse Fitness 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 NSC Groupe and Impulse Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NSC Groupe SA and Impulse Fitness Solutions, you can compare the effects of market volatilities on NSC Groupe and Impulse Fitness 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 NSC Groupe with a short position of Impulse Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of NSC Groupe and Impulse Fitness.
Diversification Opportunities for NSC Groupe and Impulse Fitness
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NSC and Impulse is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding NSC Groupe SA and Impulse Fitness Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Fitness Solutions and NSC Groupe 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 NSC Groupe SA are associated (or correlated) with Impulse Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Fitness Solutions has no effect on the direction of NSC Groupe i.e., NSC Groupe and Impulse Fitness go up and down completely randomly.
Pair Corralation between NSC Groupe and Impulse Fitness
Assuming the 90 days trading horizon NSC Groupe SA is expected to generate 1.49 times more return on investment than Impulse Fitness. However, NSC Groupe is 1.49 times more volatile than Impulse Fitness Solutions. It trades about -0.12 of its potential returns per unit of risk. Impulse Fitness Solutions is currently generating about -0.21 per unit of risk. If you would invest 6,750 in NSC Groupe SA on September 5, 2024 and sell it today you would lose (750.00) from holding NSC Groupe SA or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NSC Groupe SA vs. Impulse Fitness Solutions
Performance |
| Timeline |
| NSC Groupe SA |
| Impulse Fitness Solutions |
NSC Groupe and Impulse Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NSC Groupe and Impulse Fitness
The main advantage of trading using opposite NSC Groupe and Impulse Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NSC Groupe position performs unexpectedly, Impulse Fitness 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 Impulse Fitness will offset losses from the drop in Impulse Fitness' long position.| NSC Groupe vs. Mersen SA | NSC Groupe vs. Trigano SA | NSC Groupe vs. Chargeurs SA | NSC Groupe vs. Eramet SA |
| Impulse Fitness vs. Trigano SA | Impulse Fitness vs. SA Catana Group | Impulse Fitness vs. Fountaine Pajo | Impulse Fitness vs. Piscines Desjoyaux SA |
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 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.
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