Correlation Between NMI Holdings and SPDR ICE
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By analyzing existing cross correlation between NMI Holdings and SPDR ICE BofA, you can compare the effects of market volatilities on NMI Holdings and SPDR ICE 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 SPDR ICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and SPDR ICE.
Diversification Opportunities for NMI Holdings and SPDR ICE
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NMI and SPDR is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and SPDR ICE BofA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR ICE BofA 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 SPDR ICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR ICE BofA has no effect on the direction of NMI Holdings i.e., NMI Holdings and SPDR ICE go up and down completely randomly.
Pair Corralation between NMI Holdings and SPDR ICE
Assuming the 90 days horizon NMI Holdings is expected to generate 9.39 times more return on investment than SPDR ICE. However, NMI Holdings is 9.39 times more volatile than SPDR ICE BofA. It trades about 0.1 of its potential returns per unit of risk. SPDR ICE BofA is currently generating about 0.12 per unit of risk. If you would invest 3,000 in NMI Holdings on September 3, 2024 and sell it today you would earn a total of 760.00 from holding NMI Holdings or generate 25.33% 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. SPDR ICE BofA
Performance |
| Timeline |
| NMI Holdings |
| SPDR ICE BofA |
NMI Holdings and SPDR ICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NMI Holdings and SPDR ICE
The main advantage of trading using opposite NMI Holdings and SPDR ICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, SPDR ICE 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 SPDR ICE will offset losses from the drop in SPDR ICE's long position.| NMI Holdings vs. Harmony Gold Mining | NMI Holdings vs. WT OFFSHORE | NMI Holdings vs. Luckin Coffee | NMI Holdings vs. BJs Restaurants |
| SPDR ICE vs. SPDR Barclays 10 | SPDR ICE vs. SPDR SP Utilities | SPDR ICE vs. SPDR ICE BofA | SPDR ICE vs. SPDR Barclays 3 5 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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