Correlation Between Aedas Homes and NH HOTEL
Can any of the company-specific risk be diversified away by investing in both Aedas Homes and NH HOTEL 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 Aedas Homes and NH HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aedas Homes SA and NH HOTEL GROUP, you can compare the effects of market volatilities on Aedas Homes and NH HOTEL 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 Aedas Homes with a short position of NH HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aedas Homes and NH HOTEL.
Diversification Opportunities for Aedas Homes and NH HOTEL
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aedas and NH5 is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Aedas Homes SA and NH HOTEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH HOTEL GROUP and Aedas Homes 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 Aedas Homes SA are associated (or correlated) with NH HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH HOTEL GROUP has no effect on the direction of Aedas Homes i.e., Aedas Homes and NH HOTEL go up and down completely randomly.
Pair Corralation between Aedas Homes and NH HOTEL
Assuming the 90 days horizon Aedas Homes SA is expected to generate 0.54 times more return on investment than NH HOTEL. However, Aedas Homes SA is 1.84 times less risky than NH HOTEL. It trades about 0.14 of its potential returns per unit of risk. NH HOTEL GROUP is currently generating about 0.05 per unit of risk. If you would invest 893.00 in Aedas Homes SA on December 12, 2024 and sell it today you would earn a total of 1,922 from holding Aedas Homes SA or generate 215.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aedas Homes SA vs. NH HOTEL GROUP
Performance |
| Timeline |
| Aedas Homes SA |
| NH HOTEL GROUP |
Aedas Homes and NH HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aedas Homes and NH HOTEL
The main advantage of trading using opposite Aedas Homes and NH HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aedas Homes position performs unexpectedly, NH HOTEL 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 NH HOTEL will offset losses from the drop in NH HOTEL's long position.| Aedas Homes vs. LINMON MEDIA LTD | ||
| Aedas Homes vs. American Eagle Outfitters | ||
| Aedas Homes vs. Beijing Media | ||
| Aedas Homes vs. AcadeMedia AB |
| NH HOTEL vs. TOREX SEMICONDUCTOR LTD | ||
| NH HOTEL vs. Alibaba Health Information | ||
| NH HOTEL vs. BE Semiconductor Industries | ||
| NH HOTEL vs. DATANG INTL POW |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |