Correlation Between NRC Group and Next Biometrics
Can any of the company-specific risk be diversified away by investing in both NRC Group and Next Biometrics 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 NRC Group and Next Biometrics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NRC Group ASA and Next Biometrics Group, you can compare the effects of market volatilities on NRC Group and Next Biometrics 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 NRC Group with a short position of Next Biometrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of NRC Group and Next Biometrics.
Diversification Opportunities for NRC Group and Next Biometrics
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NRC and Next is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding NRC Group ASA and Next Biometrics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Next Biometrics Group and NRC 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 NRC Group ASA are associated (or correlated) with Next Biometrics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Next Biometrics Group has no effect on the direction of NRC Group i.e., NRC Group and Next Biometrics go up and down completely randomly.
Pair Corralation between NRC Group and Next Biometrics
Assuming the 90 days trading horizon NRC Group ASA is expected to generate 1.0 times more return on investment than Next Biometrics. However, NRC Group ASA is 1.0 times less risky than Next Biometrics. It trades about 0.08 of its potential returns per unit of risk. Next Biometrics Group is currently generating about -0.18 per unit of risk. If you would invest 634.00 in NRC Group ASA on May 31, 2025 and sell it today you would earn a total of 81.00 from holding NRC Group ASA or generate 12.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NRC Group ASA vs. Next Biometrics Group
Performance |
| Timeline |
| NRC Group ASA |
| Next Biometrics Group |
NRC Group and Next Biometrics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NRC Group and Next Biometrics
The main advantage of trading using opposite NRC Group and Next Biometrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NRC Group position performs unexpectedly, Next Biometrics 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 Next Biometrics will offset losses from the drop in Next Biometrics' long position.| NRC Group vs. Kitron ASA | NRC Group vs. Veidekke ASA | NRC Group vs. AF Gruppen ASA | NRC Group vs. Borregaard ASA |
| Next Biometrics vs. Idex ASA | Next Biometrics vs. Bergenbio ASA | Next Biometrics vs. Precise Biometrics AB | Next Biometrics vs. Kongsberg Automotive Holding |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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