Correlation Between PICC Property and NMI Holdings
Can any of the company-specific risk be diversified away by investing in both PICC Property and NMI Holdings 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 PICC Property and NMI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICC Property and and NMI Holdings, you can compare the effects of market volatilities on PICC Property and NMI Holdings 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 PICC Property with a short position of NMI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICC Property and NMI Holdings.
Diversification Opportunities for PICC Property and NMI Holdings
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PICC and NMI is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property and and NMI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMI Holdings and PICC Property 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 PICC Property and are associated (or correlated) with NMI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NMI Holdings has no effect on the direction of PICC Property i.e., PICC Property and NMI Holdings go up and down completely randomly.
Pair Corralation between PICC Property and NMI Holdings
Assuming the 90 days horizon PICC Property and is expected to generate 1.76 times more return on investment than NMI Holdings. However, PICC Property is 1.76 times more volatile than NMI Holdings. It trades about 0.25 of its potential returns per unit of risk. NMI Holdings is currently generating about 0.05 per unit of risk. If you would invest 119.00 in PICC Property and on August 28, 2024 and sell it today you would earn a total of 26.00 from holding PICC Property and or generate 21.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PICC Property and vs. NMI Holdings
Performance |
| Timeline |
| PICC Property |
| NMI Holdings |
PICC Property and NMI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICC Property and NMI Holdings
The main advantage of trading using opposite PICC Property and NMI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICC Property position performs unexpectedly, NMI Holdings 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 NMI Holdings will offset losses from the drop in NMI Holdings' long position.| PICC Property vs. Superior Plus Corp | PICC Property vs. NMI Holdings | PICC Property vs. Origin Agritech | PICC Property vs. SIVERS SEMICONDUCTORS AB |
| NMI Holdings vs. CSSC Offshore Marine | NMI Holdings vs. SIEM OFFSHORE NEW | NMI Holdings vs. PARKEN Sport Entertainment | NMI Holdings vs. SK TELECOM TDADR |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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