Correlation Between NSC Groupe and Thermador Groupe
Can any of the company-specific risk be diversified away by investing in both NSC Groupe and Thermador Groupe 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 Thermador Groupe 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 Thermador Groupe SA, you can compare the effects of market volatilities on NSC Groupe and Thermador Groupe 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 Thermador Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of NSC Groupe and Thermador Groupe.
Diversification Opportunities for NSC Groupe and Thermador Groupe
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NSC and Thermador is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding NSC Groupe SA and Thermador Groupe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermador Groupe 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 Thermador Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermador Groupe has no effect on the direction of NSC Groupe i.e., NSC Groupe and Thermador Groupe go up and down completely randomly.
Pair Corralation between NSC Groupe and Thermador Groupe
Assuming the 90 days trading horizon NSC Groupe SA is expected to generate 3.62 times more return on investment than Thermador Groupe. However, NSC Groupe is 3.62 times more volatile than Thermador Groupe SA. It trades about 0.0 of its potential returns per unit of risk. Thermador Groupe SA is currently generating about -0.08 per unit of risk. If you would invest 6,750 in NSC Groupe SA on September 13, 2024 and sell it today you would lose (600.00) from holding NSC Groupe SA or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NSC Groupe SA vs. Thermador Groupe SA
Performance |
| Timeline |
| NSC Groupe SA |
| Thermador Groupe |
NSC Groupe and Thermador Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NSC Groupe and Thermador Groupe
The main advantage of trading using opposite NSC Groupe and Thermador Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NSC Groupe position performs unexpectedly, Thermador Groupe 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 Thermador Groupe will offset losses from the drop in Thermador Groupe's long position.| NSC Groupe vs. Thermador Groupe SA | NSC Groupe vs. Samse SA | NSC Groupe vs. Rubis SCA | NSC Groupe vs. Trigano SA |
| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
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.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |