Correlation Between SOEDER SPORTFISKE and NMI Holdings
Can any of the company-specific risk be diversified away by investing in both SOEDER SPORTFISKE and NMI Holdings 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 SOEDER SPORTFISKE and NMI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOEDER SPORTFISKE AB and NMI Holdings, you can compare the effects of market volatilities on SOEDER SPORTFISKE and NMI Holdings 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 SOEDER SPORTFISKE with a short position of NMI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOEDER SPORTFISKE and NMI Holdings.
Diversification Opportunities for SOEDER SPORTFISKE and NMI Holdings
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between SOEDER and NMI is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding SOEDER SPORTFISKE AB and NMI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMI Holdings and SOEDER SPORTFISKE 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 SOEDER SPORTFISKE AB are associated (or correlated) with NMI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NMI Holdings has no effect on the direction of SOEDER SPORTFISKE i.e., SOEDER SPORTFISKE and NMI Holdings go up and down completely randomly.
Pair Corralation between SOEDER SPORTFISKE and NMI Holdings
Assuming the 90 days horizon SOEDER SPORTFISKE AB is expected to generate 1.4 times more return on investment than NMI Holdings. However, SOEDER SPORTFISKE is 1.4 times more volatile than NMI Holdings. It trades about 0.08 of its potential returns per unit of risk. NMI Holdings is currently generating about 0.01 per unit of risk. If you would invest 223.00 in SOEDER SPORTFISKE AB on October 29, 2024 and sell it today you would earn a total of 26.00 from holding SOEDER SPORTFISKE AB or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOEDER SPORTFISKE AB vs. NMI Holdings
Performance |
| Timeline |
| SOEDER SPORTFISKE |
| NMI Holdings |
SOEDER SPORTFISKE and NMI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOEDER SPORTFISKE and NMI Holdings
The main advantage of trading using opposite SOEDER SPORTFISKE and NMI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOEDER SPORTFISKE position performs unexpectedly, NMI Holdings 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 NMI Holdings will offset losses from the drop in NMI Holdings' long position.| SOEDER SPORTFISKE vs. BJs Wholesale Club | SOEDER SPORTFISKE vs. Corporate Travel Management | SOEDER SPORTFISKE vs. Ross Stores | SOEDER SPORTFISKE vs. GRENKELEASING Dusseldorf |
| NMI Holdings vs. INFORMATION SVC GRP | NMI Holdings vs. CN DATANG C | NMI Holdings vs. REVO INSURANCE SPA | NMI Holdings vs. Teradata Corp |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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