Correlation Between Assicurazioni Generali and NN Group
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali and NN Group 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 Assicurazioni Generali and NN Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assicurazioni Generali SpA and NN Group NV, you can compare the effects of market volatilities on Assicurazioni Generali and NN Group 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 Assicurazioni Generali with a short position of NN Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and NN Group.
Diversification Opportunities for Assicurazioni Generali and NN Group
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Assicurazioni and NNGRY is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and NN Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NN Group NV and Assicurazioni Generali 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 Assicurazioni Generali SpA are associated (or correlated) with NN Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NN Group NV has no effect on the direction of Assicurazioni Generali i.e., Assicurazioni Generali and NN Group go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and NN Group
Assuming the 90 days horizon Assicurazioni Generali SpA is expected to generate 1.14 times more return on investment than NN Group. However, Assicurazioni Generali is 1.14 times more volatile than NN Group NV. It trades about 0.07 of its potential returns per unit of risk. NN Group NV is currently generating about 0.02 per unit of risk. If you would invest 1,286 in Assicurazioni Generali SpA on September 1, 2024 and sell it today you would earn a total of 141.00 from holding Assicurazioni Generali SpA or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. NN Group NV
Performance |
| Timeline |
| Assicurazioni Generali |
| NN Group NV |
Assicurazioni Generali and NN Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and NN Group
The main advantage of trading using opposite Assicurazioni Generali and NN Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali position performs unexpectedly, NN Group 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 NN Group will offset losses from the drop in NN Group's long position.| Assicurazioni Generali vs. Sampo Oyj | Assicurazioni Generali vs. ageas SANV | Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. AXA SA |
| NN Group vs. Sampo Oyj | NN Group vs. ageas SANV | NN Group vs. Athene Holding | NN Group vs. Assicurazioni Generali SpA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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