Correlation Between Immofinanz and NMI Holdings
Can any of the company-specific risk be diversified away by investing in both Immofinanz 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 Immofinanz and NMI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Immofinanz AG and NMI Holdings, you can compare the effects of market volatilities on Immofinanz 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 Immofinanz with a short position of NMI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Immofinanz and NMI Holdings.
Diversification Opportunities for Immofinanz and NMI Holdings
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Immofinanz and NMI is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Immofinanz AG and NMI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMI Holdings and Immofinanz 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 Immofinanz AG 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 Immofinanz i.e., Immofinanz and NMI Holdings go up and down completely randomly.
Pair Corralation between Immofinanz and NMI Holdings
Assuming the 90 days trading horizon Immofinanz is expected to generate 1.03 times less return on investment than NMI Holdings. But when comparing it to its historical volatility, Immofinanz AG is 1.45 times less risky than NMI Holdings. It trades about 0.15 of its potential returns per unit of risk. NMI Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,580 in NMI Holdings on September 1, 2024 and sell it today you would earn a total of 180.00 from holding NMI Holdings or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Immofinanz AG vs. NMI Holdings
Performance |
| Timeline |
| Immofinanz AG |
| NMI Holdings |
Immofinanz and NMI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Immofinanz and NMI Holdings
The main advantage of trading using opposite Immofinanz and NMI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Immofinanz 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.| Immofinanz vs. OPEN HOUSE GROUP | Immofinanz vs. Superior Plus Corp | Immofinanz vs. NMI Holdings | Immofinanz vs. Origin Agritech |
| NMI Holdings vs. KIMBALL ELECTRONICS | NMI Holdings vs. UET United Electronic | NMI Holdings vs. BYD ELECTRONIC | NMI Holdings vs. Benchmark Electronics |
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.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |