Correlation Between Crombie Real and NRG Energy
Can any of the company-specific risk be diversified away by investing in both Crombie Real and NRG Energy 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 Crombie Real and NRG Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crombie Real Estate and NRG Energy, you can compare the effects of market volatilities on Crombie Real and NRG Energy 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 Crombie Real with a short position of NRG Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crombie Real and NRG Energy.
Diversification Opportunities for Crombie Real and NRG Energy
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crombie and NRG is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Crombie Real Estate and NRG Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRG Energy and Crombie Real 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 Crombie Real Estate are associated (or correlated) with NRG Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRG Energy has no effect on the direction of Crombie Real i.e., Crombie Real and NRG Energy go up and down completely randomly.
Pair Corralation between Crombie Real and NRG Energy
Assuming the 90 days horizon Crombie Real is expected to generate 169.36 times less return on investment than NRG Energy. But when comparing it to its historical volatility, Crombie Real Estate is 2.82 times less risky than NRG Energy. It trades about 0.0 of its potential returns per unit of risk. NRG Energy is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 14,738 in NRG Energy on September 8, 2025 and sell it today you would earn a total of 1,562 from holding NRG Energy or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Crombie Real Estate vs. NRG Energy
Performance |
| Timeline |
| Crombie Real Estate |
| NRG Energy |
Crombie Real and NRG Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crombie Real and NRG Energy
The main advantage of trading using opposite Crombie Real and NRG Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crombie Real position performs unexpectedly, NRG Energy 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 NRG Energy will offset losses from the drop in NRG Energy's long position.| Crombie Real vs. Office Properties Income | Crombie Real vs. Tuxis | Crombie Real vs. CSG Systems International | Crombie Real vs. Fujitsu Ltd ADR |
| NRG Energy vs. Indutrade AB | NRG Energy vs. Mineral Mountain Mining | NRG Energy vs. Blue Note Mining | NRG Energy vs. Magna Mining |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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