Correlation Between AMBRA SA and NH HOTEL
Can any of the company-specific risk be diversified away by investing in both AMBRA SA 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 AMBRA SA and NH HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMBRA SA A and NH HOTEL GROUP, you can compare the effects of market volatilities on AMBRA SA 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 AMBRA SA with a short position of NH HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMBRA SA and NH HOTEL.
Diversification Opportunities for AMBRA SA and NH HOTEL
Pay attention - limited upside
The 3 months correlation between AMBRA and NH5 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMBRA SA A 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 AMBRA SA 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 AMBRA SA A 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 AMBRA SA i.e., AMBRA SA and NH HOTEL go up and down completely randomly.
Pair Corralation between AMBRA SA and NH HOTEL
If you would invest 401.00 in NH HOTEL GROUP on November 8, 2024 and sell it today you would earn a total of 226.00 from holding NH HOTEL GROUP or generate 56.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
AMBRA SA A vs. NH HOTEL GROUP
Performance |
| Timeline |
| AMBRA SA A |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NH HOTEL GROUP |
AMBRA SA and NH HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMBRA SA and NH HOTEL
The main advantage of trading using opposite AMBRA SA and NH HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMBRA SA 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.| AMBRA SA vs. Chuangs China Investments | AMBRA SA vs. Canadian Utilities Limited | AMBRA SA vs. MidCap Financial Investment | AMBRA SA vs. VARIOUS EATERIES LS |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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