Correlation Between NMI Holdings and UBS ETF
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By analyzing existing cross correlation between NMI Holdings and UBS ETF SICAV, you can compare the effects of market volatilities on NMI Holdings and UBS ETF 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 ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and UBS ETF.
Diversification Opportunities for NMI Holdings and UBS ETF
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NMI and UBS is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and UBS ETF SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETF SICAV 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 ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETF SICAV has no effect on the direction of NMI Holdings i.e., NMI Holdings and UBS ETF go up and down completely randomly.
Pair Corralation between NMI Holdings and UBS ETF
Assuming the 90 days horizon NMI Holdings is expected to generate 3.04 times more return on investment than UBS ETF. However, NMI Holdings is 3.04 times more volatile than UBS ETF SICAV. It trades about 0.13 of its potential returns per unit of risk. UBS ETF SICAV is currently generating about -0.05 per unit of risk. If you would invest 3,580 in NMI Holdings on August 31, 2024 and sell it today you would earn a total of 220.00 from holding NMI Holdings or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NMI Holdings vs. UBS ETF SICAV
Performance |
| Timeline |
| NMI Holdings |
| UBS ETF SICAV |
NMI Holdings and UBS ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and UBS ETF
The main advantage of trading using opposite NMI Holdings and UBS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, UBS ETF 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 ETF will offset losses from the drop in UBS ETF's long position.| NMI Holdings vs. Iridium Communications | NMI Holdings vs. BOS BETTER ONLINE | NMI Holdings vs. Verizon Communications | NMI Holdings vs. Singapore Telecommunications Limited |
| UBS ETF vs. Xtrackers Nikkei 225 | UBS ETF vs. iShares VII PLC | UBS ETF vs. NMI Holdings | UBS ETF 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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