Correlation Between LODESTAR MIN and Nib Holdings

Can any of the company-specific risk be diversified away by investing in both LODESTAR MIN and Nib Holdings 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 LODESTAR MIN and Nib Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between LODESTAR MIN and nib holdings limited, you can compare the effects of market volatilities on LODESTAR MIN and Nib Holdings 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 LODESTAR MIN with a short position of Nib Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of LODESTAR MIN and Nib Holdings.

Diversification Opportunities for LODESTAR MIN and Nib Holdings

-0.75

Correlation Coefficient

LODESTAR MIN  Nib Holdings

Pay attention - limited upside

The 3 months correlation between LODESTAR and Nib is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding LODESTAR MIN and nib holdings limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nib holdings limited and LODESTAR MIN 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 LODESTAR MIN are associated (or correlated) with Nib Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nib holdings limited has no effect on the direction of LODESTAR MIN i.e., LODESTAR MIN and Nib Holdings go up and down completely randomly.

Pair Corralation between LODESTAR MIN and Nib Holdings

If you would invest  328.00  in nib holdings limited on October 11, 2024 and sell it today you would lose (4.00) from holding nib holdings limited or give up 1.22% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

LODESTAR MIN  vs.  nib holdings limited

LODESTAR MIN

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LODESTAR MIN are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile forward-looking indicators, LODESTAR MIN exhibited solid returns over the last few months and may actually be approaching a breakup point.

nib holdings limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days nib holdings limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with LODESTAR MIN and Nib Holdings

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

The idea behind LODESTAR MIN and nib holdings limited 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.