Correlation Between NMC Health and Dow Jones
Can any of the company-specific risk be diversified away by investing in both NMC Health and Dow Jones 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 NMC Health and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NMC Health PLC and Dow Jones Industrial, you can compare the effects of market volatilities on NMC Health and Dow Jones 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 NMC Health with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMC Health and Dow Jones.
Diversification Opportunities for NMC Health and Dow Jones
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NMC and Dow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NMC Health PLC and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and NMC Health 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 NMC Health PLC are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of NMC Health i.e., NMC Health and Dow Jones go up and down completely randomly.
Pair Corralation between NMC Health and Dow Jones
If you would invest (100.00) in NMC Health PLC on December 11, 2024 and sell it today you would earn a total of 100.00 from holding NMC Health PLC 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 |
NMC Health PLC vs. Dow Jones Industrial
Performance |
| Timeline |
NMC Health and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
NMC Health PLC
Pair trading matchups for NMC Health
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with NMC Health and Dow Jones
The main advantage of trading using opposite NMC Health and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMC Health position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| NMC Health vs. Veltex | NMC Health vs. Numinus Wellness | NMC Health vs. IMAC Holdings | NMC Health vs. P3 Health Partners |
| Dow Jones vs. The Gap, | Dow Jones vs. Corporacion America Airports | Dow Jones vs. Mesa Air Group | Dow Jones vs. National Vision Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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