Correlation Between NMI Holdings and WIZZ AIR
Can any of the company-specific risk be diversified away by investing in both NMI Holdings and WIZZ AIR 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 WIZZ AIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMI Holdings and WIZZ AIR HLDGUNSPADR4, you can compare the effects of market volatilities on NMI Holdings and WIZZ AIR 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 WIZZ AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and WIZZ AIR.
Diversification Opportunities for NMI Holdings and WIZZ AIR
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NMI and WIZZ is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and WIZZ AIR HLDGUNSPADR4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIZZ AIR HLDGUNSPADR4 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 WIZZ AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIZZ AIR HLDGUNSPADR4 has no effect on the direction of NMI Holdings i.e., NMI Holdings and WIZZ AIR go up and down completely randomly.
Pair Corralation between NMI Holdings and WIZZ AIR
Assuming the 90 days horizon NMI Holdings is expected to generate 0.65 times more return on investment than WIZZ AIR. However, NMI Holdings is 1.53 times less risky than WIZZ AIR. It trades about 0.13 of its potential returns per unit of risk. WIZZ AIR HLDGUNSPADR4 is currently generating about -0.05 per unit of risk. If you would invest 3,540 in NMI Holdings on September 2, 2024 and sell it today you would earn a total of 220.00 from holding NMI Holdings or generate 6.21% 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. WIZZ AIR HLDGUNSPADR4
Performance |
| Timeline |
| NMI Holdings |
| WIZZ AIR HLDGUNSPADR4 |
NMI Holdings and WIZZ AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and WIZZ AIR
The main advantage of trading using opposite NMI Holdings and WIZZ AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, WIZZ AIR 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 WIZZ AIR will offset losses from the drop in WIZZ AIR's long position.| NMI Holdings vs. Taylor Morrison Home | NMI Holdings vs. ATRYS HEALTH SA | NMI Holdings vs. National Health Investors | NMI Holdings vs. Bumrungrad Hospital Public |
| WIZZ AIR vs. Jupiter Fund Management | WIZZ AIR vs. Genco Shipping Trading | WIZZ AIR vs. Zijin Mining Group | WIZZ AIR vs. HK Electric Investments |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |