Correlation Between BTS Group and NI Holdings
Can any of the company-specific risk be diversified away by investing in both BTS Group and NI 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 BTS Group and NI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTS Group Holdings and NI Holdings, you can compare the effects of market volatilities on BTS Group and NI 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 BTS Group with a short position of NI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and NI Holdings.
Diversification Opportunities for BTS Group and NI Holdings
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BTS and NODK is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and NI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NI Holdings and BTS Group 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 BTS Group Holdings are associated (or correlated) with NI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NI Holdings has no effect on the direction of BTS Group i.e., BTS Group and NI Holdings go up and down completely randomly.
Pair Corralation between BTS Group and NI Holdings
If you would invest 1,650 in BTS Group Holdings on December 1, 2024 and sell it today you would earn a total of 0.00 from holding BTS Group Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTS Group Holdings vs. NI Holdings
Performance |
| Timeline |
| BTS Group Holdings |
| NI Holdings |
BTS Group and NI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and NI Holdings
The main advantage of trading using opposite BTS Group and NI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, NI 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 NI Holdings will offset losses from the drop in NI Holdings' long position.| BTS Group vs. Kellanova | BTS Group vs. NH Foods Ltd | BTS Group vs. NL Industries | BTS Group vs. Hudson Technologies |
| NI Holdings vs. Horace Mann Educators | NI Holdings vs. Donegal Group A | NI Holdings vs. Global Indemnity PLC | NI Holdings vs. Selective Insurance Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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