Correlation Between NI Holdings and Omni Health
Can any of the company-specific risk be diversified away by investing in both NI Holdings and Omni Health 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 Omni Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NI Holdings and Omni Health, you can compare the effects of market volatilities on NI Holdings and Omni Health 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 Omni Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and Omni Health.
Diversification Opportunities for NI Holdings and Omni Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NODK and Omni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and Omni Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omni Health 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 Omni Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omni Health has no effect on the direction of NI Holdings i.e., NI Holdings and Omni Health go up and down completely randomly.
Pair Corralation between NI Holdings and Omni Health
If you would invest 1,522 in NI Holdings on September 3, 2024 and sell it today you would earn a total of 57.00 from holding NI Holdings or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
NI Holdings vs. Omni Health
Performance |
| Timeline |
| NI Holdings |
| Omni Health |
NI Holdings and Omni Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NI Holdings and Omni Health
The main advantage of trading using opposite NI Holdings and Omni Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings position performs unexpectedly, Omni Health 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 Omni Health will offset losses from the drop in Omni Health's 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 |
| Omni Health vs. Caf Serendipity Holdings | Omni Health vs. Green Cures Botanical | Omni Health vs. Vapor Group | Omni Health vs. Ubiquitech Software |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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