Correlation Between NMI Holdings and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and Huntington Bancshares 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 Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on NMI Holdings and Huntington Bancshares 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 Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and Huntington Bancshares.
Diversification Opportunities for NMI Holdings and Huntington Bancshares
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NMI and Huntington is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares 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 Huntington Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntington Bancshares has no effect on the direction of NMI Holdings i.e., NMI Holdings and Huntington Bancshares go up and down completely randomly.
Pair Corralation between NMI Holdings and Huntington Bancshares
If you would invest (100.00) in Huntington Bancshares Incorporated on August 25, 2024 and sell it today you would earn a total of 100.00 from holding Huntington Bancshares Incorporated or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
NMI Holdings vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| NMI Holdings |
| Huntington Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
NMI Holdings and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and Huntington Bancshares
The main advantage of trading using opposite NMI Holdings and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, Huntington Bancshares 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 Huntington Bancshares will offset losses from the drop in Huntington Bancshares' long position.| NMI Holdings vs. USWE SPORTS AB | NMI Holdings vs. GungHo Online Entertainment | NMI Holdings vs. Ming Le Sports | NMI Holdings vs. DICKS Sporting Goods |
| Huntington Bancshares vs. SCIENCE IN SPORT | Huntington Bancshares vs. Sporttotal AG | Huntington Bancshares vs. Algonquin Power Utilities | Huntington Bancshares vs. COLUMBIA SPORTSWEAR |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |