Correlation Between PPHE HOTEL and GMEXICO B
Can any of the company-specific risk be diversified away by investing in both PPHE HOTEL and GMEXICO B 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 PPHE HOTEL and GMEXICO B into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PPHE HOTEL GROUP and GMEXICO B, you can compare the effects of market volatilities on PPHE HOTEL and GMEXICO B 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 PPHE HOTEL with a short position of GMEXICO B. Check out your portfolio center. Please also check ongoing floating volatility patterns of PPHE HOTEL and GMEXICO B.
Diversification Opportunities for PPHE HOTEL and GMEXICO B
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PPHE and GMEXICO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PPHE HOTEL GROUP and GMEXICO B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMEXICO B and PPHE HOTEL 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 PPHE HOTEL GROUP are associated (or correlated) with GMEXICO B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMEXICO B has no effect on the direction of PPHE HOTEL i.e., PPHE HOTEL and GMEXICO B go up and down completely randomly.
Pair Corralation between PPHE HOTEL and GMEXICO B
If you would invest (100.00) in GMEXICO B on October 29, 2024 and sell it today you would earn a total of 100.00 from holding GMEXICO B or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PPHE HOTEL GROUP vs. GMEXICO B
Performance |
| Timeline |
| PPHE HOTEL GROUP |
| GMEXICO B |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PPHE HOTEL and GMEXICO B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PPHE HOTEL and GMEXICO B
The main advantage of trading using opposite PPHE HOTEL and GMEXICO B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PPHE HOTEL position performs unexpectedly, GMEXICO B 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 GMEXICO B will offset losses from the drop in GMEXICO B's long position.| PPHE HOTEL vs. Boyd Gaming | PPHE HOTEL vs. CompuGroup Medical SE | PPHE HOTEL vs. Corsair Gaming | PPHE HOTEL vs. PLAYMATES TOYS |
| GMEXICO B vs. Sanyo Chemical Industries | GMEXICO B vs. Host Hotels Resorts | GMEXICO B vs. PPHE HOTEL GROUP | GMEXICO B vs. Dalata Hotel Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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