Correlation Between Publicis Groupe and NMI Holdings
Can any of the company-specific risk be diversified away by investing in both Publicis Groupe 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 Publicis Groupe and NMI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Publicis Groupe SA and NMI Holdings, you can compare the effects of market volatilities on Publicis Groupe 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 Publicis Groupe with a short position of NMI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Publicis Groupe and NMI Holdings.
Diversification Opportunities for Publicis Groupe and NMI Holdings
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Publicis and NMI is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Publicis Groupe SA and NMI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NMI Holdings and Publicis Groupe 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 Publicis Groupe SA 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 Publicis Groupe i.e., Publicis Groupe and NMI Holdings go up and down completely randomly.
Pair Corralation between Publicis Groupe and NMI Holdings
Assuming the 90 days horizon Publicis Groupe SA is expected to generate 0.93 times more return on investment than NMI Holdings. However, Publicis Groupe SA is 1.07 times less risky than NMI Holdings. It trades about 0.03 of its potential returns per unit of risk. NMI Holdings is currently generating about 0.02 per unit of risk. If you would invest 9,930 in Publicis Groupe SA on September 2, 2024 and sell it today you would earn a total of 230.00 from holding Publicis Groupe SA or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Publicis Groupe SA vs. NMI Holdings
Performance |
| Timeline |
| Publicis Groupe SA |
| NMI Holdings |
Publicis Groupe and NMI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Publicis Groupe and NMI Holdings
The main advantage of trading using opposite Publicis Groupe and NMI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Publicis Groupe 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.| Publicis Groupe vs. WPP PLC ADR | Publicis Groupe vs. Superior Plus Corp | Publicis Groupe vs. NMI Holdings | Publicis Groupe vs. Origin Agritech |
| NMI Holdings vs. Taylor Morrison Home | NMI Holdings vs. ATRYS HEALTH SA | NMI Holdings vs. National Health Investors | NMI Holdings vs. Bumrungrad Hospital Public |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |