Correlation Between NMI Holdings and TRADEDOUBLER
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and TRADEDOUBLER 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 NMI Holdings and TRADEDOUBLER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and TRADEDOUBLER AB SK, you can compare the effects of market volatilities on NMI Holdings and TRADEDOUBLER 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 NMI Holdings with a short position of TRADEDOUBLER. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and TRADEDOUBLER.
Diversification Opportunities for NMI Holdings and TRADEDOUBLER
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NMI and TRADEDOUBLER is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and TRADEDOUBLER AB SK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADEDOUBLER AB SK and NMI Holdings 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 NMI Holdings are associated (or correlated) with TRADEDOUBLER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADEDOUBLER AB SK has no effect on the direction of NMI Holdings i.e., NMI Holdings and TRADEDOUBLER go up and down completely randomly.
Pair Corralation between NMI Holdings and TRADEDOUBLER
Assuming the 90 days horizon NMI Holdings is expected to under-perform the TRADEDOUBLER. But the stock apears to be less risky and, when comparing its historical volatility, NMI Holdings is 3.46 times less risky than TRADEDOUBLER. The stock trades about -0.03 of its potential returns per unit of risk. The TRADEDOUBLER AB SK is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 27.00 in TRADEDOUBLER AB SK on December 30, 2024 and sell it today you would earn a total of 24.00 from holding TRADEDOUBLER AB SK or generate 88.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
NMI Holdings vs. TRADEDOUBLER AB SK
Performance |
Timeline |
NMI Holdings |
TRADEDOUBLER AB SK |
NMI Holdings and TRADEDOUBLER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NMI Holdings and TRADEDOUBLER
The main advantage of trading using opposite NMI Holdings and TRADEDOUBLER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, TRADEDOUBLER 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 TRADEDOUBLER will offset losses from the drop in TRADEDOUBLER's long position.NMI Holdings vs. MARKET VECTR RETAIL | NMI Holdings vs. Fast Retailing Co | NMI Holdings vs. Tower Semiconductor | NMI Holdings vs. Semiconductor Manufacturing International |
TRADEDOUBLER vs. ePlay Digital | TRADEDOUBLER vs. Commercial Vehicle Group | TRADEDOUBLER vs. Aristocrat Leisure Limited | TRADEDOUBLER vs. The Boston Beer |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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