Correlation Between NMI Holdings and BNP Paribas
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By analyzing existing cross correlation between NMI Holdings and BNP Paribas Easy, you can compare the effects of market volatilities on NMI Holdings and BNP Paribas 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 BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and BNP Paribas.
Diversification Opportunities for NMI Holdings and BNP Paribas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NMI and BNP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and BNP Paribas Easy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas Easy 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 BNP Paribas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNP Paribas Easy has no effect on the direction of NMI Holdings i.e., NMI Holdings and BNP Paribas go up and down completely randomly.
Pair Corralation between NMI Holdings and BNP Paribas
Assuming the 90 days horizon NMI Holdings is expected to generate 17.82 times more return on investment than BNP Paribas. However, NMI Holdings is 17.82 times more volatile than BNP Paribas Easy. It trades about 0.11 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about 0.22 per unit of risk. If you would invest 2,860 in NMI Holdings on September 3, 2024 and sell it today you would earn a total of 900.00 from holding NMI Holdings or generate 31.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NMI Holdings vs. BNP Paribas Easy
Performance |
| Timeline |
| NMI Holdings |
| BNP Paribas Easy |
NMI Holdings and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and BNP Paribas
The main advantage of trading using opposite NMI Holdings and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, BNP Paribas 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 BNP Paribas will offset losses from the drop in BNP Paribas' long position.| NMI Holdings vs. Harmony Gold Mining | NMI Holdings vs. WT OFFSHORE | NMI Holdings vs. Luckin Coffee | NMI Holdings vs. BJs Restaurants |
| BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy | BNP Paribas vs. BNP Paribas Easy |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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