Correlation Between Host Hotels and Neometals
Can any of the company-specific risk be diversified away by investing in both Host Hotels and Neometals 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 Host Hotels and Neometals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Host Hotels Resorts and Neometals, you can compare the effects of market volatilities on Host Hotels and Neometals 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 Host Hotels with a short position of Neometals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and Neometals.
Diversification Opportunities for Host Hotels and Neometals
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Host and Neometals is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts and Neometals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neometals and Host Hotels 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 Host Hotels Resorts are associated (or correlated) with Neometals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neometals has no effect on the direction of Host Hotels i.e., Host Hotels and Neometals go up and down completely randomly.
Pair Corralation between Host Hotels and Neometals
If you would invest 1,739 in Host Hotels Resorts on September 2, 2024 and sell it today you would earn a total of 113.00 from holding Host Hotels Resorts or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Host Hotels Resorts vs. Neometals
Performance |
| Timeline |
| Host Hotels Resorts |
| Neometals |
Host Hotels and Neometals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and Neometals
The main advantage of trading using opposite Host Hotels and Neometals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels position performs unexpectedly, Neometals 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 Neometals will offset losses from the drop in Neometals' long position.| Host Hotels vs. Uniper SE | Host Hotels vs. Mulberry Group PLC | Host Hotels vs. London Security Plc | Host Hotels vs. Triad Group PLC |
| Neometals vs. Jacquet Metal Service | Neometals vs. AfriTin Mining | Neometals vs. Norman Broadbent Plc | Neometals vs. Darden Restaurants |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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