Correlation Between NMI Holdings and Leverage Shares
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By analyzing existing cross correlation between NMI Holdings and Leverage Shares 3x, you can compare the effects of market volatilities on NMI Holdings and Leverage Shares 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 Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and Leverage Shares.
Diversification Opportunities for NMI Holdings and Leverage Shares
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NMI and Leverage is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and Leverage Shares 3x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 3x 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 Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 3x has no effect on the direction of NMI Holdings i.e., NMI Holdings and Leverage Shares go up and down completely randomly.
Pair Corralation between NMI Holdings and Leverage Shares
Assuming the 90 days horizon NMI Holdings is expected to generate 0.21 times more return on investment than Leverage Shares. However, NMI Holdings is 4.67 times less risky than Leverage Shares. It trades about 0.1 of its potential returns per unit of risk. Leverage Shares 3x is currently generating about -0.13 per unit of risk. If you would invest 3,580 in NMI Holdings on September 1, 2024 and sell it today you would earn a total of 180.00 from holding NMI Holdings or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NMI Holdings vs. Leverage Shares 3x
Performance |
| Timeline |
| NMI Holdings |
| Leverage Shares 3x |
NMI Holdings and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and Leverage Shares
The main advantage of trading using opposite NMI Holdings and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.| NMI Holdings vs. KIMBALL ELECTRONICS | NMI Holdings vs. UET United Electronic | NMI Holdings vs. BYD ELECTRONIC | NMI Holdings vs. Benchmark Electronics |
| Leverage Shares vs. Xtrackers Nikkei 225 | Leverage Shares vs. iShares VII PLC | Leverage Shares vs. NMI Holdings | Leverage Shares vs. SIVERS SEMICONDUCTORS AB |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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