Correlation Between NMI Holdings and SEAZEN GROUP
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and SEAZEN GROUP 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 SEAZEN GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and SEAZEN GROUP LTD, you can compare the effects of market volatilities on NMI Holdings and SEAZEN GROUP 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 SEAZEN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and SEAZEN GROUP.
Diversification Opportunities for NMI Holdings and SEAZEN GROUP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NMI and SEAZEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and SEAZEN GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEAZEN GROUP LTD 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 SEAZEN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEAZEN GROUP LTD has no effect on the direction of NMI Holdings i.e., NMI Holdings and SEAZEN GROUP go up and down completely randomly.
Pair Corralation between NMI Holdings and SEAZEN GROUP
If you would invest 3,060 in NMI Holdings on September 2, 2024 and sell it today you would earn a total of 700.00 from holding NMI Holdings or generate 22.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.77% |
| Values | Daily Returns |
NMI Holdings vs. SEAZEN GROUP LTD
Performance |
| Timeline |
| NMI Holdings |
| SEAZEN GROUP LTD |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NMI Holdings and SEAZEN GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and SEAZEN GROUP
The main advantage of trading using opposite NMI Holdings and SEAZEN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, SEAZEN GROUP 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 SEAZEN GROUP will offset losses from the drop in SEAZEN GROUP's long position.| NMI Holdings vs. Taylor Morrison Home | NMI Holdings vs. ATRYS HEALTH SA | NMI Holdings vs. National Health Investors | NMI Holdings vs. Bumrungrad Hospital Public |
| SEAZEN GROUP vs. Dairy Farm International | SEAZEN GROUP vs. Vastned Retail NV | SEAZEN GROUP vs. BURLINGTON STORES | SEAZEN GROUP vs. Astral Foods Limited |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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