Correlation Between AGRICULTBK HADR/25 and NN Group
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 and NN Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICULTBK HADR25 YC and NN Group NV, you can compare the effects of market volatilities on AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 with a short position of NN Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and NN Group.
Diversification Opportunities for AGRICULTBK HADR/25 and NN Group
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRICULTBK and 2NN is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC 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 AGRICULTBK HADR/25 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 AGRICULTBK HADR25 YC 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 AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and NN Group go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR/25 and NN Group
Assuming the 90 days trading horizon AGRICULTBK HADR25 YC is expected to generate 1.46 times more return on investment than NN Group. However, AGRICULTBK HADR/25 is 1.46 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 0.04 per unit of risk. If you would invest 641.00 in AGRICULTBK HADR25 YC on October 23, 2024 and sell it today you would earn a total of 609.00 from holding AGRICULTBK HADR25 YC or generate 95.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. NN Group NV
Performance |
| Timeline |
| AGRICULTBK HADR/25 |
| NN Group NV |
AGRICULTBK HADR/25 and NN Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR/25 and NN Group
The main advantage of trading using opposite AGRICULTBK HADR/25 and NN Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 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.| AGRICULTBK HADR/25 vs. Sumitomo Mitsui Construction | AGRICULTBK HADR/25 vs. TITAN MACHINERY | AGRICULTBK HADR/25 vs. THRACE PLASTICS | AGRICULTBK HADR/25 vs. NEWELL RUBBERMAID |
| NN Group vs. MOUNT GIBSON IRON | NN Group vs. ANGANG STEEL H | NN Group vs. SPORT LISBOA E | NN Group vs. KOBE STEEL LTD |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |