Correlation Between First Acceptance and NI Holdings
Can any of the company-specific risk be diversified away by investing in both First Acceptance 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 First Acceptance and NI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Acceptance Corp and NI Holdings, you can compare the effects of market volatilities on First Acceptance 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 First Acceptance with a short position of NI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Acceptance and NI Holdings.
Diversification Opportunities for First Acceptance and NI Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and NODK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Acceptance Corp and NI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NI Holdings and First Acceptance 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 First Acceptance Corp 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 First Acceptance i.e., First Acceptance and NI Holdings go up and down completely randomly.
Pair Corralation between First Acceptance and NI Holdings
If you would invest 1,344 in NI Holdings on January 12, 2025 and sell it today you would lose (35.00) from holding NI Holdings or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
First Acceptance Corp vs. NI Holdings
Performance |
| Timeline |
| First Acceptance Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| NI Holdings |
First Acceptance and NI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Acceptance and NI Holdings
The main advantage of trading using opposite First Acceptance and NI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Acceptance 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.| First Acceptance vs. Essent Group | First Acceptance vs. James River Group | First Acceptance vs. MGIC Investment Corp | First Acceptance vs. Employers Holdings |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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