Correlation Between NMI Holdings and RTL Group
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By analyzing existing cross correlation between NMI Holdings and RTL Group SA, you can compare the effects of market volatilities on NMI Holdings and RTL Group 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 RTL Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and RTL Group.
Diversification Opportunities for NMI Holdings and RTL Group
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NMI and RTL is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and RTL Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL Group SA 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 RTL Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL Group SA has no effect on the direction of NMI Holdings i.e., NMI Holdings and RTL Group go up and down completely randomly.
Pair Corralation between NMI Holdings and RTL Group
Assuming the 90 days horizon NMI Holdings is expected to generate 1.09 times more return on investment than RTL Group. However, NMI Holdings is 1.09 times more volatile than RTL Group SA. It trades about 0.09 of its potential returns per unit of risk. RTL Group SA is currently generating about -0.03 per unit of risk. If you would invest 1,930 in NMI Holdings on September 12, 2024 and sell it today you would earn a total of 1,770 from holding NMI Holdings or generate 91.71% 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. RTL Group SA
Performance |
| Timeline |
| NMI Holdings |
| RTL Group SA |
NMI Holdings and RTL Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and RTL Group
The main advantage of trading using opposite NMI Holdings and RTL Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, RTL Group 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 RTL Group will offset losses from the drop in RTL Group's long position.| NMI Holdings vs. Nufarm Limited | NMI Holdings vs. AVITA Medical | NMI Holdings vs. Sterling Construction | NMI Holdings vs. Avanos Medical |
| RTL Group vs. INTERCONT HOTELS | RTL Group vs. MIRAMAR HOTEL INV | RTL Group vs. Corporate Office Properties | RTL Group vs. Xenia Hotels Resorts |
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 Stocks Directory module to find actively traded stocks across global markets.
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