Correlation Between NI Holdings and 209111GE7

Can any of the company-specific risk be diversified away by investing in both NI Holdings and 209111GE7 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 209111GE7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NI Holdings and ED 52 01 MAR 33, you can compare the effects of market volatilities on NI Holdings and 209111GE7 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 209111GE7. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and 209111GE7.

Diversification Opportunities for NI Holdings and 209111GE7

-0.36

Correlation Coefficient

NI Holdings  209111GE7

Very good diversification

The 3 months correlation between NODK and 209111GE7 is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and ED 52 01 MAR 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 209111GE7 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 209111GE7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 209111GE7 has no effect on the direction of NI Holdings i.e., NI Holdings and 209111GE7 go up and down completely randomly.

Pair Corralation between NI Holdings and 209111GE7

Given the investment horizon of 90 days NI Holdings is expected to under-perform the 209111GE7. In addition to that, NI Holdings is 2.75 times more volatile than ED 52 01 MAR 33. It trades about -0.09 of its total potential returns per unit of risk. ED 52 01 MAR 33 is currently generating about 0.03 per unit of volatility. If you would invest  10,046  in ED 52 01 MAR 33 on December 30, 2024 and sell it today you would earn a total of  107.00  from holding ED 52 01 MAR 33 or generate 1.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

NI Holdings  vs.  ED 52 01 MAR 33

NI Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days NI Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

209111GE7

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ED 52 01 MAR 33 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 209111GE7 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with NI Holdings and 209111GE7

The main advantage of trading using opposite NI Holdings and 209111GE7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings position performs unexpectedly, 209111GE7 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 209111GE7 will offset losses from the drop in 209111GE7's long position.

The idea behind NI Holdings and ED 52 01 MAR 33 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.