Correlation Between Koninklijke Vopak and NN Group
Can any of the company-specific risk be diversified away by investing in both Koninklijke Vopak 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 Koninklijke Vopak and NN Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koninklijke Vopak NV and NN Group NV, you can compare the effects of market volatilities on Koninklijke Vopak 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 Koninklijke Vopak with a short position of NN Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koninklijke Vopak and NN Group.
Diversification Opportunities for Koninklijke Vopak and NN Group
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koninklijke and NN Group is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Koninklijke Vopak NV 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 Koninklijke Vopak 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 Koninklijke Vopak NV 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 Koninklijke Vopak i.e., Koninklijke Vopak and NN Group go up and down completely randomly.
Pair Corralation between Koninklijke Vopak and NN Group
Assuming the 90 days trading horizon Koninklijke Vopak NV is expected to generate 1.31 times more return on investment than NN Group. However, Koninklijke Vopak is 1.31 times more volatile than NN Group NV. It trades about 0.1 of its potential returns per unit of risk. NN Group NV is currently generating about 0.05 per unit of risk. If you would invest 3,688 in Koninklijke Vopak NV on September 13, 2024 and sell it today you would earn a total of 556.00 from holding Koninklijke Vopak NV or generate 15.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koninklijke Vopak NV vs. NN Group NV
Performance |
| Timeline |
| Koninklijke Vopak |
| NN Group NV |
Koninklijke Vopak and NN Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koninklijke Vopak and NN Group
The main advantage of trading using opposite Koninklijke Vopak and NN Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koninklijke Vopak 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.| Koninklijke Vopak vs. Aalberts Industries NV | Koninklijke Vopak vs. SBM Offshore NV | Koninklijke Vopak vs. NN Group NV | Koninklijke Vopak vs. Randstad NV |
| NN Group vs. ASR Nederland NV | NN Group vs. Aegon NV | NN Group vs. Koninklijke Ahold Delhaize | NN Group vs. ABN Amro Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |