Correlation Between NMI Holdings and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and FUYO GENERAL 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 FUYO GENERAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and FUYO GENERAL LEASE, you can compare the effects of market volatilities on NMI Holdings and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and FUYO GENERAL.
Diversification Opportunities for NMI Holdings and FUYO GENERAL
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between NMI and FUYO is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of NMI Holdings i.e., NMI Holdings and FUYO GENERAL go up and down completely randomly.
Pair Corralation between NMI Holdings and FUYO GENERAL
Assuming the 90 days horizon NMI Holdings is expected to under-perform the FUYO GENERAL. In addition to that, NMI Holdings is 1.73 times more volatile than FUYO GENERAL LEASE. It trades about -0.04 of its total potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.11 per unit of volatility. If you would invest 6,450 in FUYO GENERAL LEASE on August 24, 2024 and sell it today you would earn a total of 200.00 from holding FUYO GENERAL LEASE or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NMI Holdings vs. FUYO GENERAL LEASE
Performance |
| Timeline |
| NMI Holdings |
| FUYO GENERAL LEASE |
NMI Holdings and FUYO GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and FUYO GENERAL
The main advantage of trading using opposite NMI Holdings and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.| NMI Holdings vs. Lion One Metals | NMI Holdings vs. Harmony Gold Mining | NMI Holdings vs. OFFICE DEPOT | NMI Holdings vs. JAPAN TOBACCO UNSPADR12 |
| FUYO GENERAL vs. United Rentals | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. Superior Plus Corp | FUYO GENERAL vs. NMI Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |