Correlation Between NMI Holdings and ACANTHE DEVELOPPEM
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and ACANTHE DEVELOPPEM 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 ACANTHE DEVELOPPEM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and ACANTHE DEVELOPPEM ON, you can compare the effects of market volatilities on NMI Holdings and ACANTHE DEVELOPPEM 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 ACANTHE DEVELOPPEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and ACANTHE DEVELOPPEM.
Diversification Opportunities for NMI Holdings and ACANTHE DEVELOPPEM
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between NMI and ACANTHE is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and ACANTHE DEVELOPPEM ON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACANTHE DEVELOPPEM 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 ACANTHE DEVELOPPEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACANTHE DEVELOPPEM has no effect on the direction of NMI Holdings i.e., NMI Holdings and ACANTHE DEVELOPPEM go up and down completely randomly.
Pair Corralation between NMI Holdings and ACANTHE DEVELOPPEM
Assuming the 90 days horizon NMI Holdings is expected to generate 1.79 times more return on investment than ACANTHE DEVELOPPEM. However, NMI Holdings is 1.79 times more volatile than ACANTHE DEVELOPPEM ON. It trades about 0.11 of its potential returns per unit of risk. ACANTHE DEVELOPPEM ON is currently generating about -0.21 per unit of risk. If you would invest 3,580 in NMI Holdings on September 1, 2024 and sell it today you would earn a total of 200.00 from holding NMI Holdings or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NMI Holdings vs. ACANTHE DEVELOPPEM ON
Performance |
| Timeline |
| NMI Holdings |
| ACANTHE DEVELOPPEM |
NMI Holdings and ACANTHE DEVELOPPEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and ACANTHE DEVELOPPEM
The main advantage of trading using opposite NMI Holdings and ACANTHE DEVELOPPEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, ACANTHE DEVELOPPEM 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 ACANTHE DEVELOPPEM will offset losses from the drop in ACANTHE DEVELOPPEM's long position.| NMI Holdings vs. KIMBALL ELECTRONICS | NMI Holdings vs. UET United Electronic | NMI Holdings vs. BYD ELECTRONIC | NMI Holdings vs. Benchmark Electronics |
| ACANTHE DEVELOPPEM vs. Superior Plus Corp | ACANTHE DEVELOPPEM vs. NMI Holdings | ACANTHE DEVELOPPEM vs. Origin Agritech | ACANTHE DEVELOPPEM 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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