Correlation Between NMI Holdings and UBS Barclays
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By analyzing existing cross correlation between NMI Holdings and UBS Barclays Liquid, you can compare the effects of market volatilities on NMI Holdings and UBS Barclays 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 UBS Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and UBS Barclays.
Diversification Opportunities for NMI Holdings and UBS Barclays
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NMI and UBS is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and UBS Barclays Liquid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Barclays Liquid 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 UBS Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Barclays Liquid has no effect on the direction of NMI Holdings i.e., NMI Holdings and UBS Barclays go up and down completely randomly.
Pair Corralation between NMI Holdings and UBS Barclays
Assuming the 90 days horizon NMI Holdings is expected to generate 4.55 times more return on investment than UBS Barclays. However, NMI Holdings is 4.55 times more volatile than UBS Barclays Liquid. It trades about 0.27 of its potential returns per unit of risk. UBS Barclays Liquid is currently generating about 0.46 per unit of risk. If you would invest 3,360 in NMI Holdings on September 3, 2024 and sell it today you would earn a total of 400.00 from holding NMI Holdings or generate 11.9% 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. UBS Barclays Liquid
Performance |
| Timeline |
| NMI Holdings |
| UBS Barclays Liquid |
NMI Holdings and UBS Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and UBS Barclays
The main advantage of trading using opposite NMI Holdings and UBS Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, UBS Barclays 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 UBS Barclays will offset losses from the drop in UBS Barclays' long position.| NMI Holdings vs. Harmony Gold Mining | NMI Holdings vs. WT OFFSHORE | NMI Holdings vs. Luckin Coffee | NMI Holdings vs. BJs Restaurants |
| UBS Barclays vs. UBS Fund Solutions | UBS Barclays vs. Xtrackers II | UBS Barclays vs. Xtrackers Nikkei 225 | UBS Barclays 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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