Correlation Between NMI Holdings and CIFI Holdings
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and CIFI 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 NMI Holdings and CIFI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and CIFI Holdings Co, you can compare the effects of market volatilities on NMI Holdings and CIFI 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 NMI Holdings with a short position of CIFI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and CIFI Holdings.
Diversification Opportunities for NMI Holdings and CIFI Holdings
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between NMI and CIFI is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and CIFI Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIFI Holdings 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 CIFI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIFI Holdings has no effect on the direction of NMI Holdings i.e., NMI Holdings and CIFI Holdings go up and down completely randomly.
Pair Corralation between NMI Holdings and CIFI Holdings
Assuming the 90 days horizon NMI Holdings is expected to generate 0.4 times more return on investment than CIFI Holdings. However, NMI Holdings is 2.53 times less risky than CIFI Holdings. It trades about 0.05 of its potential returns per unit of risk. CIFI Holdings Co is currently generating about -0.2 per unit of risk. If you would invest 3,580 in NMI Holdings on August 27, 2024 and sell it today you would earn a total of 60.00 from holding NMI Holdings or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NMI Holdings vs. CIFI Holdings Co
Performance |
| Timeline |
| NMI Holdings |
| CIFI Holdings |
NMI Holdings and CIFI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and CIFI Holdings
The main advantage of trading using opposite NMI Holdings and CIFI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, CIFI 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 CIFI Holdings will offset losses from the drop in CIFI Holdings' long position.| NMI Holdings vs. Lion Biotechnologies | NMI Holdings vs. Digilife Technologies Limited | NMI Holdings vs. Food Life Companies | NMI Holdings vs. CONAGRA FOODS |
| CIFI Holdings vs. Superior Plus Corp | CIFI Holdings vs. NMI Holdings | CIFI Holdings vs. Origin Agritech | CIFI Holdings vs. SIVERS SEMICONDUCTORS AB |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |