Correlation Between NMI Holdings and IMAGIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and IMAGIN MEDICAL 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 IMAGIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and IMAGIN MEDICAL INC, you can compare the effects of market volatilities on NMI Holdings and IMAGIN MEDICAL 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 IMAGIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and IMAGIN MEDICAL.
Diversification Opportunities for NMI Holdings and IMAGIN MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NMI and IMAGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and IMAGIN MEDICAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAGIN MEDICAL INC 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 IMAGIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMAGIN MEDICAL INC has no effect on the direction of NMI Holdings i.e., NMI Holdings and IMAGIN MEDICAL go up and down completely randomly.
Pair Corralation between NMI Holdings and IMAGIN MEDICAL
If you would invest 3,540 in NMI Holdings on September 18, 2024 and sell it today you would earn a total of 60.00 from holding NMI Holdings or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NMI Holdings vs. IMAGIN MEDICAL INC
Performance |
| Timeline |
| NMI Holdings |
| IMAGIN MEDICAL INC |
NMI Holdings and IMAGIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and IMAGIN MEDICAL
The main advantage of trading using opposite NMI Holdings and IMAGIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, IMAGIN MEDICAL 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 IMAGIN MEDICAL will offset losses from the drop in IMAGIN MEDICAL's long position.| NMI Holdings vs. Gamma Communications plc | NMI Holdings vs. AEGEAN AIRLINES | NMI Holdings vs. Spirent Communications plc | NMI Holdings vs. Highlight Communications AG |
| IMAGIN MEDICAL vs. Fukuyama Transporting Co | IMAGIN MEDICAL vs. ANTA SPORTS PRODUCT | IMAGIN MEDICAL vs. JIAHUA STORES | IMAGIN MEDICAL vs. AEON STORES |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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