Correlation Between Scandic Hotels and Panther Metals
Can any of the company-specific risk be diversified away by investing in both Scandic Hotels and Panther Metals 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 Scandic Hotels and Panther Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandic Hotels Group and Panther Metals PLC, you can compare the effects of market volatilities on Scandic Hotels and Panther Metals 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 Scandic Hotels with a short position of Panther Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandic Hotels and Panther Metals.
Diversification Opportunities for Scandic Hotels and Panther Metals
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scandic and Panther is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Scandic Hotels Group and Panther Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panther Metals PLC and Scandic 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 Scandic Hotels Group are associated (or correlated) with Panther Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panther Metals PLC has no effect on the direction of Scandic Hotels i.e., Scandic Hotels and Panther Metals go up and down completely randomly.
Pair Corralation between Scandic Hotels and Panther Metals
Assuming the 90 days trading horizon Scandic Hotels Group is expected to generate 0.44 times more return on investment than Panther Metals. However, Scandic Hotels Group is 2.26 times less risky than Panther Metals. It trades about 0.1 of its potential returns per unit of risk. Panther Metals PLC is currently generating about -0.54 per unit of risk. If you would invest 6,517 in Scandic Hotels Group on September 20, 2024 and sell it today you would earn a total of 191.00 from holding Scandic Hotels Group or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scandic Hotels Group vs. Panther Metals PLC
Performance |
| Timeline |
| Scandic Hotels Group |
| Panther Metals PLC |
Scandic Hotels and Panther Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandic Hotels and Panther Metals
The main advantage of trading using opposite Scandic Hotels and Panther Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandic Hotels position performs unexpectedly, Panther Metals 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 Panther Metals will offset losses from the drop in Panther Metals' long position.| Scandic Hotels vs. Samsung Electronics Co | Scandic Hotels vs. Samsung Electronics Co | Scandic Hotels vs. Hyundai Motor | Scandic Hotels vs. Reliance Industries Ltd |
| Panther Metals vs. FC Investment Trust | Panther Metals vs. PureTech Health plc | Panther Metals vs. Hansa Investment | Panther Metals vs. Allianz Technology Trust |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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