Correlation Between NN Group and Assicurazioni Generali
Can any of the company-specific risk be diversified away by investing in both NN Group and Assicurazioni Generali 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 Assicurazioni Generali 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 Assicurazioni Generali SpA, you can compare the effects of market volatilities on NN Group and Assicurazioni Generali 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 Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of NN Group and Assicurazioni Generali.
Diversification Opportunities for NN Group and Assicurazioni Generali
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NNGRY and Assicurazioni is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding NN Group NV and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali 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 Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of NN Group i.e., NN Group and Assicurazioni Generali go up and down completely randomly.
Pair Corralation between NN Group and Assicurazioni Generali
Assuming the 90 days horizon NN Group NV is expected to under-perform the Assicurazioni Generali. But the pink sheet apears to be less risky and, when comparing its historical volatility, NN Group NV is 1.29 times less risky than Assicurazioni Generali. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Assicurazioni Generali SpA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,387 in Assicurazioni Generali SpA on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Assicurazioni Generali SpA or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
NN Group NV vs. Assicurazioni Generali SpA
Performance |
| Timeline |
| NN Group NV |
| Assicurazioni Generali |
NN Group and Assicurazioni Generali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NN Group and Assicurazioni Generali
The main advantage of trading using opposite NN Group and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NN Group position performs unexpectedly, Assicurazioni Generali 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 Assicurazioni Generali will offset losses from the drop in Assicurazioni Generali's long position.| NN Group vs. Sampo Oyj | NN Group vs. ageas SANV | NN Group vs. Athene Holding | NN Group vs. Assicurazioni Generali SpA |
| Assicurazioni Generali vs. Sampo Oyj | Assicurazioni Generali vs. ageas SANV | Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. AXA 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |