Correlation Between NMI Holdings and PUMA SE
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and PUMA SE 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 PUMA SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and PUMA SE, you can compare the effects of market volatilities on NMI Holdings and PUMA SE 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 PUMA SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and PUMA SE.
Diversification Opportunities for NMI Holdings and PUMA SE
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NMI and PUMA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and PUMA SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA SE 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 PUMA SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA SE has no effect on the direction of NMI Holdings i.e., NMI Holdings and PUMA SE go up and down completely randomly.
Pair Corralation between NMI Holdings and PUMA SE
Assuming the 90 days horizon NMI Holdings is expected to generate 0.65 times more return on investment than PUMA SE. However, NMI Holdings is 1.53 times less risky than PUMA SE. It trades about 0.09 of its potential returns per unit of risk. PUMA SE is currently generating about 0.0 per unit of risk. If you would invest 1,900 in NMI Holdings on September 3, 2024 and sell it today you would earn a total of 1,860 from holding NMI Holdings or generate 97.89% 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. PUMA SE
Performance |
| Timeline |
| NMI Holdings |
| PUMA SE |
NMI Holdings and PUMA SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and PUMA SE
The main advantage of trading using opposite NMI Holdings and PUMA SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, PUMA SE 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 PUMA SE will offset losses from the drop in PUMA SE's long position.| NMI Holdings vs. Harmony Gold Mining | NMI Holdings vs. WT OFFSHORE | NMI Holdings vs. Luckin Coffee | NMI Holdings vs. BJs Restaurants |
| PUMA SE vs. BII Railway Transportation | PUMA SE vs. SEI INVESTMENTS | PUMA SE vs. Ming Le Sports | PUMA SE vs. Japan Asia Investment |
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.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |