Correlation Between NMI Holdings and ALLIANZ SE
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and ALLIANZ SE 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 ALLIANZ SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and ALLIANZ SE UNSPADR, you can compare the effects of market volatilities on NMI Holdings and ALLIANZ SE 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 ALLIANZ SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and ALLIANZ SE.
Diversification Opportunities for NMI Holdings and ALLIANZ SE
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NMI and ALLIANZ is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and ALLIANZ SE UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLIANZ SE UNSPADR 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 ALLIANZ SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLIANZ SE UNSPADR has no effect on the direction of NMI Holdings i.e., NMI Holdings and ALLIANZ SE go up and down completely randomly.
Pair Corralation between NMI Holdings and ALLIANZ SE
Assuming the 90 days horizon NMI Holdings is expected to under-perform the ALLIANZ SE. In addition to that, NMI Holdings is 1.15 times more volatile than ALLIANZ SE UNSPADR. It trades about -0.23 of its total potential returns per unit of risk. ALLIANZ SE UNSPADR is currently generating about 0.19 per unit of volatility. If you would invest 3,020 in ALLIANZ SE UNSPADR on November 27, 2024 and sell it today you would earn a total of 160.00 from holding ALLIANZ SE UNSPADR or generate 5.3% 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. ALLIANZ SE UNSPADR
Performance |
| Timeline |
| NMI Holdings |
| ALLIANZ SE UNSPADR |
NMI Holdings and ALLIANZ SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and ALLIANZ SE
The main advantage of trading using opposite NMI Holdings and ALLIANZ SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, ALLIANZ SE 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 ALLIANZ SE will offset losses from the drop in ALLIANZ SE's long position.| NMI Holdings vs. China Southern Airlines | NMI Holdings vs. Gol Intelligent Airlines | NMI Holdings vs. International Consolidated Airlines | NMI Holdings vs. CARSALESCOM |
| ALLIANZ SE vs. EBRO FOODS | ALLIANZ SE vs. HYATT HOTELS A | ALLIANZ SE vs. Dalata Hotel Group | ALLIANZ SE vs. Nomad Foods |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |