Correlation Between St Galler and Hostelworld Group
Can any of the company-specific risk be diversified away by investing in both St Galler and Hostelworld Group 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 St Galler and Hostelworld Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and Hostelworld Group PLC, you can compare the effects of market volatilities on St Galler and Hostelworld Group 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 St Galler with a short position of Hostelworld Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Hostelworld Group.
Diversification Opportunities for St Galler and Hostelworld Group
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 0QQZ and Hostelworld is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Hostelworld Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hostelworld Group PLC and St Galler 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 St Galler Kantonalbank are associated (or correlated) with Hostelworld Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hostelworld Group PLC has no effect on the direction of St Galler i.e., St Galler and Hostelworld Group go up and down completely randomly.
Pair Corralation between St Galler and Hostelworld Group
Assuming the 90 days trading horizon St Galler Kantonalbank is expected to under-perform the Hostelworld Group. But the stock apears to be less risky and, when comparing its historical volatility, St Galler Kantonalbank is 3.14 times less risky than Hostelworld Group. The stock trades about -0.07 of its potential returns per unit of risk. The Hostelworld Group PLC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 13,200 in Hostelworld Group PLC on August 30, 2024 and sell it today you would earn a total of 50.00 from holding Hostelworld Group PLC or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Hostelworld Group PLC
Performance |
| Timeline |
| St Galler Kantonalbank |
| Hostelworld Group PLC |
St Galler and Hostelworld Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Hostelworld Group
The main advantage of trading using opposite St Galler and Hostelworld Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler position performs unexpectedly, Hostelworld Group 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 Hostelworld Group will offset losses from the drop in Hostelworld Group's long position.| St Galler vs. Tungsten West PLC | St Galler vs. Argo Group Limited | St Galler vs. Hardide PLC | St Galler vs. Versarien PLC |
| Hostelworld Group vs. National Bank of | Hostelworld Group vs. Regions Financial Corp | Hostelworld Group vs. St Galler Kantonalbank | Hostelworld Group vs. X FAB Silicon Foundries |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |