Correlation Between Kuehne Nagel and NMI Holdings
Can any of the company-specific risk be diversified away by investing in both Kuehne Nagel 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 Kuehne Nagel and NMI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuehne Nagel International and NMI Holdings, you can compare the effects of market volatilities on Kuehne Nagel 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 Kuehne Nagel with a short position of NMI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuehne Nagel and NMI Holdings.
Diversification Opportunities for Kuehne Nagel and NMI Holdings
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kuehne and NMI is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Kuehne Nagel International and NMI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMI Holdings and Kuehne Nagel 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 Kuehne Nagel International 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 Kuehne Nagel i.e., Kuehne Nagel and NMI Holdings go up and down completely randomly.
Pair Corralation between Kuehne Nagel and NMI Holdings
Assuming the 90 days trading horizon Kuehne Nagel International is expected to under-perform the NMI Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Kuehne Nagel International is 1.43 times less risky than NMI Holdings. The stock trades about -0.08 of its potential returns per unit of risk. The NMI Holdings is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,360 in NMI Holdings on September 5, 2024 and sell it today you would earn a total of 420.00 from holding NMI Holdings or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuehne Nagel International vs. NMI Holdings
Performance |
| Timeline |
| Kuehne Nagel Interna |
| NMI Holdings |
Kuehne Nagel and NMI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuehne Nagel and NMI Holdings
The main advantage of trading using opposite Kuehne Nagel and NMI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuehne Nagel 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.| Kuehne Nagel vs. Ultra Clean Holdings | Kuehne Nagel vs. ULTRA CLEAN HLDGS | Kuehne Nagel vs. Sunny Optical Technology | Kuehne Nagel vs. Casio Computer CoLtd |
| NMI Holdings vs. HYATT HOTELS A | NMI Holdings vs. Pebblebrook Hotel Trust | NMI Holdings vs. Penta Ocean Construction Co | NMI Holdings vs. Dalata Hotel 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |