Correlation Between Nicolet Bankshares and Horace Mann
Can any of the company-specific risk be diversified away by investing in both Nicolet Bankshares and Horace Mann 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 Nicolet Bankshares and Horace Mann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicolet Bankshares and Horace Mann Educators, you can compare the effects of market volatilities on Nicolet Bankshares and Horace Mann 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 Nicolet Bankshares with a short position of Horace Mann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicolet Bankshares and Horace Mann.
Diversification Opportunities for Nicolet Bankshares and Horace Mann
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nicolet and Horace is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nicolet Bankshares and Horace Mann Educators in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horace Mann Educators and Nicolet Bankshares 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 Nicolet Bankshares are associated (or correlated) with Horace Mann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horace Mann Educators has no effect on the direction of Nicolet Bankshares i.e., Nicolet Bankshares and Horace Mann go up and down completely randomly.
Pair Corralation between Nicolet Bankshares and Horace Mann
Considering the 90-day investment horizon Nicolet Bankshares is expected to under-perform the Horace Mann. In addition to that, Nicolet Bankshares is 1.53 times more volatile than Horace Mann Educators. It trades about -0.03 of its total potential returns per unit of risk. Horace Mann Educators is currently generating about 0.06 per unit of volatility. If you would invest 4,431 in Horace Mann Educators on August 18, 2025 and sell it today you would earn a total of 203.00 from holding Horace Mann Educators or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nicolet Bankshares vs. Horace Mann Educators
Performance |
| Timeline |
| Nicolet Bankshares |
| Horace Mann Educators |
Nicolet Bankshares and Horace Mann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicolet Bankshares and Horace Mann
The main advantage of trading using opposite Nicolet Bankshares and Horace Mann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicolet Bankshares position performs unexpectedly, Horace Mann 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 Horace Mann will offset losses from the drop in Horace Mann's long position.| Nicolet Bankshares vs. City Holding | Nicolet Bankshares vs. Northwest Bancshares | Nicolet Bankshares vs. OFG Bancorp | Nicolet Bankshares vs. Enterprise Financial Services |
| Horace Mann vs. Skyward Specialty Insurance | Horace Mann vs. Stewart Information Services | Horace Mann vs. Slide Insurance Holdings, | Horace Mann vs. Nicolet Bankshares |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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