Correlation Between NMI Holdings and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and SQUIRREL 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 NMI Holdings and SQUIRREL MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and SQUIRREL MEDIA SA, you can compare the effects of market volatilities on NMI Holdings and SQUIRREL 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 NMI Holdings with a short position of SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and SQUIRREL MEDIA.
Diversification Opportunities for NMI Holdings and SQUIRREL MEDIA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NMI and SQUIRREL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA 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 SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of NMI Holdings i.e., NMI Holdings and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between NMI Holdings and SQUIRREL MEDIA
Assuming the 90 days horizon NMI Holdings is expected to under-perform the SQUIRREL MEDIA. But the stock apears to be less risky and, when comparing its historical volatility, NMI Holdings is 1.31 times less risky than SQUIRREL MEDIA. The stock trades about -0.06 of its potential returns per unit of risk. The SQUIRREL MEDIA SA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 125.00 in SQUIRREL MEDIA SA on October 30, 2024 and sell it today you would earn a total of 9.00 from holding SQUIRREL MEDIA SA or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NMI Holdings vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| NMI Holdings |
| SQUIRREL MEDIA SA |
NMI Holdings and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and SQUIRREL MEDIA
The main advantage of trading using opposite NMI Holdings and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, SQUIRREL 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| NMI Holdings vs. GREENX METALS LTD | NMI Holdings vs. Perseus Mining Limited | NMI Holdings vs. Fortescue Metals Group | NMI Holdings vs. ARDAGH METAL PACDL 0001 |
| SQUIRREL MEDIA vs. Charter Communications | SQUIRREL MEDIA vs. Warner Music Group | SQUIRREL MEDIA vs. Superior Plus Corp | SQUIRREL MEDIA vs. Origin Agritech |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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