Correlation Between CITY OFFICE and NMI Holdings
Can any of the company-specific risk be diversified away by investing in both CITY OFFICE and NMI 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 CITY OFFICE and NMI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITY OFFICE REIT and NMI Holdings, you can compare the effects of market volatilities on CITY OFFICE and NMI 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 CITY OFFICE with a short position of NMI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITY OFFICE and NMI Holdings.
Diversification Opportunities for CITY OFFICE and NMI Holdings
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CITY and NMI is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CITY OFFICE REIT and NMI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMI Holdings and CITY OFFICE 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 CITY OFFICE REIT are associated (or correlated) with NMI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NMI Holdings has no effect on the direction of CITY OFFICE i.e., CITY OFFICE and NMI Holdings go up and down completely randomly.
Pair Corralation between CITY OFFICE and NMI Holdings
Assuming the 90 days horizon CITY OFFICE REIT is expected to under-perform the NMI Holdings. In addition to that, CITY OFFICE is 1.23 times more volatile than NMI Holdings. It trades about -0.01 of its total potential returns per unit of risk. NMI Holdings is currently generating about 0.03 per unit of volatility. If you would invest 3,540 in NMI Holdings on October 11, 2024 and sell it today you would earn a total of 20.00 from holding NMI Holdings or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITY OFFICE REIT vs. NMI Holdings
Performance |
| Timeline |
| CITY OFFICE REIT |
| NMI Holdings |
CITY OFFICE and NMI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITY OFFICE and NMI Holdings
The main advantage of trading using opposite CITY OFFICE and NMI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITY OFFICE position performs unexpectedly, NMI 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 NMI Holdings will offset losses from the drop in NMI Holdings' long position.| CITY OFFICE vs. Hyrican Informationssysteme Aktiengesellschaft | CITY OFFICE vs. EBRO FOODS | CITY OFFICE vs. SILVER BULLET DATA | CITY OFFICE vs. INFORMATION SVC GRP |
| NMI Holdings vs. Austevoll Seafood ASA | NMI Holdings vs. alstria office REIT AG | NMI Holdings vs. United Natural Foods | NMI Holdings vs. CITY OFFICE REIT |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |