Correlation Between HOYA Resort and Hotel Holiday
Can any of the company-specific risk be diversified away by investing in both HOYA Resort and Hotel Holiday 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 HOYA Resort and Hotel Holiday into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOYA Resort Hotel and Hotel Holiday Garden, you can compare the effects of market volatilities on HOYA Resort and Hotel Holiday 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 HOYA Resort with a short position of Hotel Holiday. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOYA Resort and Hotel Holiday.
Diversification Opportunities for HOYA Resort and Hotel Holiday
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between HOYA and Hotel is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding HOYA Resort Hotel and Hotel Holiday Garden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Holiday Garden and HOYA Resort 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 HOYA Resort Hotel are associated (or correlated) with Hotel Holiday. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Holiday Garden has no effect on the direction of HOYA Resort i.e., HOYA Resort and Hotel Holiday go up and down completely randomly.
Pair Corralation between HOYA Resort and Hotel Holiday
Assuming the 90 days trading horizon HOYA Resort Hotel is expected to under-perform the Hotel Holiday. In addition to that, HOYA Resort is 1.79 times more volatile than Hotel Holiday Garden. It trades about -0.08 of its total potential returns per unit of risk. Hotel Holiday Garden is currently generating about 0.05 per unit of volatility. If you would invest 1,665 in Hotel Holiday Garden on November 28, 2024 and sell it today you would earn a total of 10.00 from holding Hotel Holiday Garden or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOYA Resort Hotel vs. Hotel Holiday Garden
Performance |
| Timeline |
| HOYA Resort Hotel |
| Hotel Holiday Garden |
HOYA Resort and Hotel Holiday Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOYA Resort and Hotel Holiday
The main advantage of trading using opposite HOYA Resort and Hotel Holiday positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOYA Resort position performs unexpectedly, Hotel Holiday 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 Hotel Holiday will offset losses from the drop in Hotel Holiday's long position.| HOYA Resort vs. Cameo Communications | HOYA Resort vs. CHINA DEVELOPMENT FINANCIAL | HOYA Resort vs. Loop Telecommunication International | HOYA Resort vs. CTBC Financial Holding |
| Hotel Holiday vs. First Hotel Co | Hotel Holiday vs. Leofoo Development Co | Hotel Holiday vs. Taiwan Tea Corp | Hotel Holiday vs. China Container Terminal |
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.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |