Correlation Between NI Holdings and Trump Media
Can any of the company-specific risk be diversified away by investing in both NI Holdings and Trump Media 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 NI Holdings and Trump Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NI Holdings and Trump Media Technology, you can compare the effects of market volatilities on NI Holdings and Trump Media 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 NI Holdings with a short position of Trump Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and Trump Media.
Diversification Opportunities for NI Holdings and Trump Media
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NODK and Trump is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and Trump Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trump Media Technology and NI 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 NI Holdings are associated (or correlated) with Trump Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trump Media Technology has no effect on the direction of NI Holdings i.e., NI Holdings and Trump Media go up and down completely randomly.
Pair Corralation between NI Holdings and Trump Media
Given the investment horizon of 90 days NI Holdings is expected to generate 0.27 times more return on investment than Trump Media. However, NI Holdings is 3.69 times less risky than Trump Media. It trades about -0.11 of its potential returns per unit of risk. Trump Media Technology is currently generating about -0.03 per unit of risk. If you would invest 1,568 in NI Holdings on December 27, 2024 and sell it today you would lose (158.00) from holding NI Holdings or give up 10.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NI Holdings vs. Trump Media Technology
Performance |
Timeline |
NI Holdings |
Trump Media Technology |
NI Holdings and Trump Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NI Holdings and Trump Media
The main advantage of trading using opposite NI Holdings and Trump Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings position performs unexpectedly, Trump Media 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 Trump Media will offset losses from the drop in Trump Media's long position.NI Holdings vs. Horace Mann Educators | NI Holdings vs. Donegal Group A | NI Holdings vs. Global Indemnity PLC | NI Holdings vs. Selective Insurance Group |
Trump Media vs. Exchange Bank | Trump Media vs. Uber Technologies | Trump Media vs. Lipocine | Trump Media vs. Commonwealth Bank of |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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