Correlation Between NMI Holdings and Eurasia Mining
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and Eurasia Mining 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 Eurasia Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and Eurasia Mining Plc, you can compare the effects of market volatilities on NMI Holdings and Eurasia Mining 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 Eurasia Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and Eurasia Mining.
Diversification Opportunities for NMI Holdings and Eurasia Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NMI and Eurasia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and Eurasia Mining Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurasia Mining Plc 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 Eurasia Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurasia Mining Plc has no effect on the direction of NMI Holdings i.e., NMI Holdings and Eurasia Mining go up and down completely randomly.
Pair Corralation between NMI Holdings and Eurasia Mining
If you would invest 3,560 in NMI Holdings on October 25, 2024 and sell it today you would earn a total of 40.00 from holding NMI Holdings or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NMI Holdings vs. Eurasia Mining Plc
Performance |
| Timeline |
| NMI Holdings |
| Eurasia Mining Plc |
NMI Holdings and Eurasia Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and Eurasia Mining
The main advantage of trading using opposite NMI Holdings and Eurasia Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, Eurasia Mining 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 Eurasia Mining will offset losses from the drop in Eurasia Mining's long position.| NMI Holdings vs. FAST RETAIL ADR | NMI Holdings vs. FIRST SAVINGS FINL | NMI Holdings vs. MGIC INVESTMENT | NMI Holdings vs. Ross Stores |
| Eurasia Mining vs. BOSTON BEER A | Eurasia Mining vs. American Eagle Outfitters | Eurasia Mining vs. China Resources Beer | Eurasia Mining vs. National Beverage Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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