Correlation Between Catalent and NI Holdings
Can any of the company-specific risk be diversified away by investing in both Catalent 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 Catalent and NI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catalent and NI Holdings, you can compare the effects of market volatilities on Catalent 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 Catalent with a short position of NI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catalent and NI Holdings.
Diversification Opportunities for Catalent and NI Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Catalent and NODK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Catalent and NI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NI Holdings and Catalent 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 Catalent 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 Catalent i.e., Catalent and NI Holdings go up and down completely randomly.
Pair Corralation between Catalent and NI Holdings
If you would invest (100.00) in Catalent on December 1, 2024 and sell it today you would earn a total of 100.00 from holding Catalent or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Catalent vs. NI Holdings
Performance |
| Timeline |
| Catalent |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| NI Holdings |
Catalent and NI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catalent and NI Holdings
The main advantage of trading using opposite Catalent and NI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catalent 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.| Catalent vs. IQVIA Holdings | Catalent vs. West Pharmaceutical Services | Catalent vs. Charles River Laboratories | Catalent vs. Bio Rad Laboratories |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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