Correlation Between Sampo Oyj and NN Group
Can any of the company-specific risk be diversified away by investing in both Sampo Oyj 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 Sampo Oyj and NN Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sampo Oyj and NN Group NV, you can compare the effects of market volatilities on Sampo Oyj 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 Sampo Oyj with a short position of NN Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampo Oyj and NN Group.
Diversification Opportunities for Sampo Oyj and NN Group
Very weak diversification
The 3 months correlation between Sampo and NNGRY is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sampo Oyj 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 Sampo Oyj 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 Sampo Oyj 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 Sampo Oyj i.e., Sampo Oyj and NN Group go up and down completely randomly.
Pair Corralation between Sampo Oyj and NN Group
Assuming the 90 days horizon Sampo Oyj is expected to generate 1.2 times more return on investment than NN Group. However, Sampo Oyj is 1.2 times more volatile than NN Group NV. It trades about 0.03 of its potential returns per unit of risk. NN Group NV is currently generating about -0.22 per unit of risk. If you would invest 4,272 in Sampo Oyj on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Sampo Oyj or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sampo Oyj vs. NN Group NV
Performance |
| Timeline |
| Sampo Oyj |
| NN Group NV |
Sampo Oyj and NN Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampo Oyj and NN Group
The main advantage of trading using opposite Sampo Oyj and NN Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampo Oyj 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.| Sampo Oyj vs. ageas SANV | Sampo Oyj vs. NN Group NV | Sampo Oyj vs. Athene Holding | Sampo Oyj vs. Assicurazioni Generali SpA |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |