Correlation Between Pexip Holding and NRC Group
Can any of the company-specific risk be diversified away by investing in both Pexip Holding and NRC 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 Pexip Holding and NRC Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pexip Holding ASA and NRC Group ASA, you can compare the effects of market volatilities on Pexip Holding and NRC 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 Pexip Holding with a short position of NRC Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pexip Holding and NRC Group.
Diversification Opportunities for Pexip Holding and NRC Group
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pexip and NRC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Pexip Holding ASA and NRC Group ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NRC Group ASA and Pexip Holding 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 Pexip Holding ASA are associated (or correlated) with NRC Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NRC Group ASA has no effect on the direction of Pexip Holding i.e., Pexip Holding and NRC Group go up and down completely randomly.
Pair Corralation between Pexip Holding and NRC Group
Assuming the 90 days trading horizon Pexip Holding ASA is expected to generate 1.05 times more return on investment than NRC Group. However, Pexip Holding is 1.05 times more volatile than NRC Group ASA. It trades about 0.07 of its potential returns per unit of risk. NRC Group ASA is currently generating about -0.1 per unit of risk. If you would invest 6,120 in Pexip Holding ASA on May 28, 2025 and sell it today you would earn a total of 210.00 from holding Pexip Holding ASA or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pexip Holding ASA vs. NRC Group ASA
Performance |
| Timeline |
| Pexip Holding ASA |
| NRC Group ASA |
Pexip Holding and NRC Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pexip Holding and NRC Group
The main advantage of trading using opposite Pexip Holding and NRC Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pexip Holding position performs unexpectedly, NRC 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 NRC Group will offset losses from the drop in NRC Group's long position.| Pexip Holding vs. Techstep ASA | Pexip Holding vs. Enea AB | Pexip Holding vs. Bambuser AB | Pexip Holding vs. Nordic Semiconductor ASA |
| NRC Group vs. Kitron ASA | NRC Group vs. Veidekke ASA | NRC Group vs. AF Gruppen ASA | NRC Group vs. Borregaard ASA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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