Correlation Between NMI Holdings and Hapag-Lloyd
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and Hapag-Lloyd 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 Hapag-Lloyd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and Hapag Lloyd AG, you can compare the effects of market volatilities on NMI Holdings and Hapag-Lloyd 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 Hapag-Lloyd. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and Hapag-Lloyd.
Diversification Opportunities for NMI Holdings and Hapag-Lloyd
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NMI and Hapag-Lloyd is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and Hapag Lloyd AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hapag Lloyd AG 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 Hapag-Lloyd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hapag Lloyd AG has no effect on the direction of NMI Holdings i.e., NMI Holdings and Hapag-Lloyd go up and down completely randomly.
Pair Corralation between NMI Holdings and Hapag-Lloyd
Assuming the 90 days horizon NMI Holdings is expected to generate 0.65 times more return on investment than Hapag-Lloyd. However, NMI Holdings is 1.54 times less risky than Hapag-Lloyd. It trades about 0.27 of its potential returns per unit of risk. Hapag Lloyd AG is currently generating about -0.14 per unit of risk. If you would invest 3,360 in NMI Holdings on September 4, 2024 and sell it today you would earn a total of 400.00 from holding NMI Holdings or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
NMI Holdings vs. Hapag Lloyd AG
Performance |
| Timeline |
| NMI Holdings |
| Hapag Lloyd AG |
NMI Holdings and Hapag-Lloyd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and Hapag-Lloyd
The main advantage of trading using opposite NMI Holdings and Hapag-Lloyd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, Hapag-Lloyd 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 Hapag-Lloyd will offset losses from the drop in Hapag-Lloyd's long position.| NMI Holdings vs. HYDROFARM HLD GRP | NMI Holdings vs. VIAPLAY GROUP AB | NMI Holdings vs. Titan Machinery | NMI Holdings vs. SCANSOURCE |
| Hapag-Lloyd vs. TITAN MACHINERY | Hapag-Lloyd vs. Hanison Construction Holdings | Hapag-Lloyd vs. PLAY2CHILL SA ZY | Hapag-Lloyd vs. Chongqing Machinery Electric |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |