Correlation Between NN Group and SILICON LABORATOR

Can any of the company-specific risk be diversified away by investing in both NN Group and SILICON LABORATOR 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 SILICON LABORATOR 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 SILICON LABORATOR, you can compare the effects of market volatilities on NN Group and SILICON LABORATOR 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 SILICON LABORATOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of NN Group and SILICON LABORATOR.

Diversification Opportunities for NN Group and SILICON LABORATOR

0.0

Correlation Coefficient

NN Group  SILICON LABORATOR

Pay attention - limited upside

The 3 months correlation between 2NN and SILICON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NN Group NV and SILICON LABORATOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SILICON LABORATOR 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 SILICON LABORATOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SILICON LABORATOR has no effect on the direction of NN Group i.e., NN Group and SILICON LABORATOR go up and down completely randomly.

Pair Corralation between NN Group and SILICON LABORATOR

If you would invest  0.00  in NN Group NV on December 20, 2024 and sell it today you would earn a total of  0.00  from holding NN Group NV or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

NN Group NV  vs.  SILICON LABORATOR

NN Group NV

Risk-Adjusted Performance

Solid

Over the last 90 days NN Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, NN Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SILICON LABORATOR

Risk-Adjusted Performance

Very Weak

Over the last 90 days SILICON LABORATOR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SILICON LABORATOR is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with NN Group and SILICON LABORATOR

The main advantage of trading using opposite NN Group and SILICON LABORATOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NN Group position performs unexpectedly, SILICON LABORATOR 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 SILICON LABORATOR will offset losses from the drop in SILICON LABORATOR's long position.

The idea behind NN Group NV and SILICON LABORATOR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.