Correlation Between NMI Holdings and INTERSHOP Communications
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By analyzing existing cross correlation between NMI Holdings and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on NMI Holdings and INTERSHOP Communications 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 NMI Holdings with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of NMI Holdings and INTERSHOP Communications.
Diversification Opportunities for NMI Holdings and INTERSHOP Communications
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NMI and INTERSHOP is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding NMI Holdings and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and NMI 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 NMI Holdings are associated (or correlated) with INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of NMI Holdings i.e., NMI Holdings and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between NMI Holdings and INTERSHOP Communications
Assuming the 90 days horizon NMI Holdings is expected to generate 0.91 times more return on investment than INTERSHOP Communications. However, NMI Holdings is 1.1 times less risky than INTERSHOP Communications. It trades about 0.15 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.06 per unit of risk. If you would invest 2,820 in NMI Holdings on March 22, 2024 and sell it today you would earn a total of 220.00 from holding NMI Holdings or generate 7.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NMI Holdings vs. INTERSHOP Communications Aktie
Performance |
Timeline |
NMI Holdings |
INTERSHOP Communications |
NMI Holdings and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NMI Holdings and INTERSHOP Communications
The main advantage of trading using opposite NMI Holdings and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NMI Holdings position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.NMI Holdings vs. Insurance Australia Group | NMI Holdings vs. NorAm Drilling AS | NMI Holdings vs. SIVERS SEMICONDUCTORS AB | NMI Holdings vs. Norsk Hydro ASA |
INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. NMI Holdings | INTERSHOP Communications vs. NorAm Drilling AS | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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