Correlation Between SANUK and NI Holdings
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By analyzing existing cross correlation between SANUK 2896 15 MAR 32 and NI Holdings, you can compare the effects of market volatilities on SANUK and NI 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 SANUK with a short position of NI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANUK and NI Holdings.
Diversification Opportunities for SANUK and NI Holdings
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SANUK and NODK is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SANUK 2896 15 MAR 32 and NI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NI Holdings and SANUK 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 SANUK 2896 15 MAR 32 are associated (or correlated) with NI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NI Holdings has no effect on the direction of SANUK i.e., SANUK and NI Holdings go up and down completely randomly.
Pair Corralation between SANUK and NI Holdings
Assuming the 90 days trading horizon SANUK 2896 15 MAR 32 is expected to under-perform the NI Holdings. But the bond apears to be less risky and, when comparing its historical volatility, SANUK 2896 15 MAR 32 is 3.25 times less risky than NI Holdings. The bond trades about 0.0 of its potential returns per unit of risk. The NI Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,570 in NI Holdings on September 1, 2024 and sell it today you would earn a total of 44.00 from holding NI Holdings or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
SANUK 2896 15 MAR 32 vs. NI Holdings
Performance |
| Timeline |
| SANUK 2896 15 |
| NI Holdings |
SANUK and NI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANUK and NI Holdings
The main advantage of trading using opposite SANUK and NI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANUK position performs unexpectedly, NI 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 NI Holdings will offset losses from the drop in NI Holdings' long position.The idea behind SANUK 2896 15 MAR 32 and NI Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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