Correlation Between NI Holdings and 191216CE8
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By analyzing existing cross correlation between NI Holdings and COCA A 29, you can compare the effects of market volatilities on NI Holdings and 191216CE8 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 191216CE8. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and 191216CE8.
Diversification Opportunities for NI Holdings and 191216CE8
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NODK and 191216CE8 is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and COCA A 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A 29 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 191216CE8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A 29 has no effect on the direction of NI Holdings i.e., NI Holdings and 191216CE8 go up and down completely randomly.
Pair Corralation between NI Holdings and 191216CE8
Given the investment horizon of 90 days NI Holdings is expected to under-perform the 191216CE8. But the stock apears to be less risky and, when comparing its historical volatility, NI Holdings is 1.12 times less risky than 191216CE8. The stock trades about -0.17 of its potential returns per unit of risk. The COCA A 29 is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 9,655 in COCA A 29 on October 21, 2024 and sell it today you would lose (248.00) from holding COCA A 29 or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
NI Holdings vs. COCA A 29
Performance |
| Timeline |
| NI Holdings |
| COCA A 29 |
NI Holdings and 191216CE8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NI Holdings and 191216CE8
The main advantage of trading using opposite NI Holdings and 191216CE8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings position performs unexpectedly, 191216CE8 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 191216CE8 will offset losses from the drop in 191216CE8'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 |
| 191216CE8 vs. Mills Music Trust | 191216CE8 vs. Mako Mining Corp | 191216CE8 vs. Analog Devices | 191216CE8 vs. Perseus Mining Limited |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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