Correlation Between NI Holdings and Sandston Corp
Can any of the company-specific risk be diversified away by investing in both NI Holdings and Sandston Corp 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 Sandston Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NI Holdings and Sandston Corp, you can compare the effects of market volatilities on NI Holdings and Sandston Corp 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 Sandston Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and Sandston Corp.
Diversification Opportunities for NI Holdings and Sandston Corp
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NODK and Sandston is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and Sandston Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandston Corp 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 Sandston Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandston Corp has no effect on the direction of NI Holdings i.e., NI Holdings and Sandston Corp go up and down completely randomly.
Pair Corralation between NI Holdings and Sandston Corp
If you would invest 1,535 in NI Holdings on September 12, 2024 and sell it today you would earn a total of 141.00 from holding NI Holdings or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
NI Holdings vs. Sandston Corp
Performance |
| Timeline |
| NI Holdings |
| Sandston Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NI Holdings and Sandston Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NI Holdings and Sandston Corp
The main advantage of trading using opposite NI Holdings and Sandston Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings position performs unexpectedly, Sandston Corp 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 Sandston Corp will offset losses from the drop in Sandston Corp'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 |
| Sandston Corp vs. Anterix | Sandston Corp vs. Golden Matrix Group | Sandston Corp vs. Stratasys | Sandston Corp vs. Evolution Gaming 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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