Correlation Between NMI Holdings and Komercní Banka
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and Komercní Banka 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 Komercní Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and Komercn banka as, you can compare the effects of market volatilities on NMI Holdings and Komercní Banka 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 Komercní Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and Komercní Banka.
Diversification Opportunities for NMI Holdings and Komercní Banka
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NMI and Komercní is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and Komercn banka as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komercn banka as 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 Komercní Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komercn banka as has no effect on the direction of NMI Holdings i.e., NMI Holdings and Komercní Banka go up and down completely randomly.
Pair Corralation between NMI Holdings and Komercní Banka
Assuming the 90 days horizon NMI Holdings is expected to under-perform the Komercní Banka. But the stock apears to be less risky and, when comparing its historical volatility, NMI Holdings is 1.25 times less risky than Komercní Banka. The stock trades about -0.11 of its potential returns per unit of risk. The Komercn banka as is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,420 in Komercn banka as on January 16, 2025 and sell it today you would earn a total of 800.00 from holding Komercn banka as or generate 23.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NMI Holdings vs. Komercn banka as
Performance |
| Timeline |
| NMI Holdings |
| Komercn banka as |
NMI Holdings and Komercní Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and Komercní Banka
The main advantage of trading using opposite NMI Holdings and Komercní Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, Komercní Banka 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 Komercní Banka will offset losses from the drop in Komercní Banka's long position.| NMI Holdings vs. Eagle Materials | NMI Holdings vs. Sumitomo Rubber Industries | NMI Holdings vs. Hyster Yale Materials Handling | NMI Holdings vs. IBU tec advanced materials |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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