Correlation Between PPHE HOTEL and VIAPLAY GROUP
Can any of the company-specific risk be diversified away by investing in both PPHE HOTEL and VIAPLAY GROUP 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 VIAPLAY GROUP 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 VIAPLAY GROUP AB, you can compare the effects of market volatilities on PPHE HOTEL and VIAPLAY GROUP 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 VIAPLAY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of PPHE HOTEL and VIAPLAY GROUP.
Diversification Opportunities for PPHE HOTEL and VIAPLAY GROUP
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PPHE and VIAPLAY is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PPHE HOTEL GROUP and VIAPLAY GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIAPLAY GROUP AB 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 VIAPLAY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIAPLAY GROUP AB has no effect on the direction of PPHE HOTEL i.e., PPHE HOTEL and VIAPLAY GROUP go up and down completely randomly.
Pair Corralation between PPHE HOTEL and VIAPLAY GROUP
Assuming the 90 days trading horizon PPHE HOTEL is expected to generate 3.14 times less return on investment than VIAPLAY GROUP. But when comparing it to its historical volatility, PPHE HOTEL GROUP is 9.85 times less risky than VIAPLAY GROUP. It trades about 0.05 of its potential returns per unit of risk. VIAPLAY GROUP AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,053 in VIAPLAY GROUP AB on October 11, 2024 and sell it today you would lose (2,048) from holding VIAPLAY GROUP AB or give up 99.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PPHE HOTEL GROUP vs. VIAPLAY GROUP AB
Performance |
| Timeline |
| PPHE HOTEL GROUP |
| VIAPLAY GROUP AB |
PPHE HOTEL and VIAPLAY GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PPHE HOTEL and VIAPLAY GROUP
The main advantage of trading using opposite PPHE HOTEL and VIAPLAY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PPHE HOTEL position performs unexpectedly, VIAPLAY GROUP 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 VIAPLAY GROUP will offset losses from the drop in VIAPLAY GROUP's long position.| PPHE HOTEL vs. RYANAIR HLDGS ADR | PPHE HOTEL vs. Altair Engineering | PPHE HOTEL vs. CHINA SOUTHN AIR H | PPHE HOTEL vs. United Insurance Holdings |
| VIAPLAY GROUP vs. Summit Hotel Properties | VIAPLAY GROUP vs. COVIVIO HOTELS INH | VIAPLAY GROUP vs. WT OFFSHORE | VIAPLAY GROUP vs. PPHE 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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