Correlation Between NI Holdings and FedNat Holding
Can any of the company-specific risk be diversified away by investing in both NI Holdings and FedNat Holding 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 FedNat Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NI Holdings and FedNat Holding, you can compare the effects of market volatilities on NI Holdings and FedNat Holding 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 FedNat Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and FedNat Holding.
Diversification Opportunities for NI Holdings and FedNat Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NODK and FedNat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and FedNat Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FedNat Holding 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 FedNat Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FedNat Holding has no effect on the direction of NI Holdings i.e., NI Holdings and FedNat Holding go up and down completely randomly.
Pair Corralation between NI Holdings and FedNat Holding
If you would invest 1,328 in NI Holdings on August 29, 2024 and sell it today you would earn a total of 275.00 from holding NI Holdings or generate 20.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
NI Holdings vs. FedNat Holding
Performance |
| Timeline |
| NI Holdings |
| FedNat Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NI Holdings and FedNat Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NI Holdings and FedNat Holding
The main advantage of trading using opposite NI Holdings and FedNat Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings position performs unexpectedly, FedNat Holding 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 FedNat Holding will offset losses from the drop in FedNat Holding's long position.| NI Holdings vs. Fiverr International | NI Holdings vs. Pinterest | NI Holdings vs. Upstart Holdings | NI Holdings vs. Fastly Inc |
| FedNat Holding vs. Aspen Insurance Holdings | FedNat Holding vs. Yuexiu Transport Infrastructure | FedNat Holding vs. Palomar Holdings | FedNat Holding vs. Barrick Gold Corp |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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