Correlation Between NI Holdings and BATSLN
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By analyzing existing cross correlation between NI Holdings and BATSLN 475 01 NOV 42, you can compare the effects of market volatilities on NI Holdings and BATSLN 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 BATSLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and BATSLN.
Diversification Opportunities for NI Holdings and BATSLN
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NODK and BATSLN is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and BATSLN 475 01 NOV 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BATSLN 475 01 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 BATSLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BATSLN 475 01 has no effect on the direction of NI Holdings i.e., NI Holdings and BATSLN go up and down completely randomly.
Pair Corralation between NI Holdings and BATSLN
Given the investment horizon of 90 days NI Holdings is expected to generate 1.29 times less return on investment than BATSLN. But when comparing it to its historical volatility, NI Holdings is 2.02 times less risky than BATSLN. It trades about 0.04 of its potential returns per unit of risk. BATSLN 475 01 NOV 42 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,823 in BATSLN 475 01 NOV 42 on September 14, 2024 and sell it today you would earn a total of 280.00 from holding BATSLN 475 01 NOV 42 or generate 3.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.87% |
| Values | Daily Returns |
NI Holdings vs. BATSLN 475 01 NOV 42
Performance |
| Timeline |
| NI Holdings |
| BATSLN 475 01 |
NI Holdings and BATSLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NI Holdings and BATSLN
The main advantage of trading using opposite NI Holdings and BATSLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings position performs unexpectedly, BATSLN 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 BATSLN will offset losses from the drop in BATSLN'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 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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