Correlation Between NI Holdings and Femasys
Can any of the company-specific risk be diversified away by investing in both NI Holdings and Femasys 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 NI Holdings and Femasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NI Holdings and Femasys, you can compare the effects of market volatilities on NI Holdings and Femasys 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 NI Holdings with a short position of Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and Femasys.
Diversification Opportunities for NI Holdings and Femasys
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between NODK and Femasys is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys and NI Holdings 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 NI Holdings are associated (or correlated) with Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of NI Holdings i.e., NI Holdings and Femasys go up and down completely randomly.
Pair Corralation between NI Holdings and Femasys
Given the investment horizon of 90 days NI Holdings is expected to generate 17.67 times less return on investment than Femasys. But when comparing it to its historical volatility, NI Holdings is 10.8 times less risky than Femasys. It trades about 0.03 of its potential returns per unit of risk. Femasys is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 103.00 in Femasys on September 5, 2024 and sell it today you would earn a total of 5.00 from holding Femasys or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NI Holdings vs. Femasys
Performance |
| Timeline |
| NI Holdings |
| Femasys |
NI Holdings and Femasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NI Holdings and Femasys
The main advantage of trading using opposite NI Holdings and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' long position.| NI Holdings vs. Horace Mann Educators | NI Holdings vs. Donegal Group A | NI Holdings vs. Global Indemnity PLC | NI Holdings vs. Selective Insurance Group |
| Femasys vs. Baxter International | Femasys vs. West Pharmaceutical Services | Femasys vs. ResMed Inc | Femasys vs. The Cooper Companies, |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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