Correlation Between NOS SGPS and REN Redes

Can any of the company-specific risk be diversified away by investing in both NOS SGPS and REN Redes 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 NOS SGPS and REN Redes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NOS SGPS SA and REN Redes, you can compare the effects of market volatilities on NOS SGPS and REN Redes 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 NOS SGPS with a short position of REN Redes. Check out your portfolio center. Please also check ongoing floating volatility patterns of NOS SGPS and REN Redes.

Diversification Opportunities for NOS SGPS and REN Redes

0.0

Correlation Coefficient

NOS SGPS  REN Redes

Pay attention - limited upside

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

Pair Corralation between NOS SGPS and REN Redes

If you would invest (100.00) in REN Redes on August 14, 2025 and sell it today you would earn a total of  100.00  from holding REN Redes or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

NOS SGPS SA  vs.  REN Redes

NOS SGPS SA

Risk-Adjusted Performance

Weakest

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

REN Redes

Risk-Adjusted Performance

Weakest

Over the last 90 days REN Redes has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, REN Redes 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 NOS SGPS and REN Redes

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

The idea behind NOS SGPS SA and REN Redes 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.