Correlation Between NMI Holdings and Amundi SP
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By analyzing existing cross correlation between NMI Holdings and Amundi SP 500, you can compare the effects of market volatilities on NMI Holdings and Amundi SP 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 Amundi SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and Amundi SP.
Diversification Opportunities for NMI Holdings and Amundi SP
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between NMI and Amundi is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and Amundi SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi SP 500 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 Amundi SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi SP 500 has no effect on the direction of NMI Holdings i.e., NMI Holdings and Amundi SP go up and down completely randomly.
Pair Corralation between NMI Holdings and Amundi SP
Assuming the 90 days horizon NMI Holdings is expected to generate 2.11 times more return on investment than Amundi SP. However, NMI Holdings is 2.11 times more volatile than Amundi SP 500. It trades about 0.11 of its potential returns per unit of risk. Amundi SP 500 is currently generating about 0.12 per unit of risk. If you would invest 3,040 in NMI Holdings on September 3, 2024 and sell it today you would earn a total of 720.00 from holding NMI Holdings or generate 23.68% 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. Amundi SP 500
Performance |
| Timeline |
| NMI Holdings |
| Amundi SP 500 |
NMI Holdings and Amundi SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and Amundi SP
The main advantage of trading using opposite NMI Holdings and Amundi SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, Amundi SP 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 Amundi SP will offset losses from the drop in Amundi SP's long position.| NMI Holdings vs. Harmony Gold Mining | NMI Holdings vs. WT OFFSHORE | NMI Holdings vs. Luckin Coffee | NMI Holdings vs. BJs Restaurants |
| Amundi SP vs. UBS Fund Solutions | Amundi SP vs. Xtrackers II | Amundi SP vs. Xtrackers Nikkei 225 | Amundi SP vs. iShares VII PLC |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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