Correlation Between NI Holdings and 29664WAB1

Can any of the company-specific risk be diversified away by investing in both NI Holdings and 29664WAB1 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 NI Holdings and 29664WAB1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NI Holdings and ESPR 4 15 NOV 25, you can compare the effects of market volatilities on NI Holdings and 29664WAB1 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 29664WAB1. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and 29664WAB1.

Diversification Opportunities for NI Holdings and 29664WAB1

0.25

Correlation Coefficient

NI Holdings  29664WAB1

Modest diversification

The 3 months correlation between NODK and 29664WAB1 is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and ESPR 4 15 NOV 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESPR 4 15 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 29664WAB1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESPR 4 15 has no effect on the direction of NI Holdings i.e., NI Holdings and 29664WAB1 go up and down completely randomly.

Pair Corralation between NI Holdings and 29664WAB1

Given the investment horizon of 90 days NI Holdings is expected to generate 10.64 times less return on investment than 29664WAB1. But when comparing it to its historical volatility, NI Holdings is 5.89 times less risky than 29664WAB1. It trades about 0.03 of its potential returns per unit of risk. ESPR 4 15 NOV 25 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  5,525  in ESPR 4 15 NOV 25 on September 15, 2024 and sell it today you would earn a total of  825.00  from holding ESPR 4 15 NOV 25 or generate 14.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	22.02%
Values	Daily Returns

NI Holdings  vs.  ESPR 4 15 NOV 25

NI Holdings

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NI Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating fundamental indicators, NI Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

ESPR 4 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ESPR 4 15 NOV 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for ESPR 4 15 NOV 25 investors.

Pair Trading with NI Holdings and 29664WAB1

The main advantage of trading using opposite NI Holdings and 29664WAB1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings position performs unexpectedly, 29664WAB1 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 29664WAB1 will offset losses from the drop in 29664WAB1's long position.

The idea behind NI Holdings and ESPR 4 15 NOV 25 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..