Correlation Between HANSOH PHARMAC and MIRAMAR HOTEL
Can any of the company-specific risk be diversified away by investing in both HANSOH PHARMAC and MIRAMAR 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 HANSOH PHARMAC and MIRAMAR HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HANSOH PHARMAC HD 00001 and MIRAMAR HOTEL INV, you can compare the effects of market volatilities on HANSOH PHARMAC and MIRAMAR 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 HANSOH PHARMAC with a short position of MIRAMAR HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANSOH PHARMAC and MIRAMAR HOTEL.
Diversification Opportunities for HANSOH PHARMAC and MIRAMAR HOTEL
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HANSOH and MIRAMAR is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding HANSOH PHARMAC HD 00001 and MIRAMAR HOTEL INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIRAMAR HOTEL INV and HANSOH PHARMAC 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 HANSOH PHARMAC HD 00001 are associated (or correlated) with MIRAMAR HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIRAMAR HOTEL INV has no effect on the direction of HANSOH PHARMAC i.e., HANSOH PHARMAC and MIRAMAR HOTEL go up and down completely randomly.
Pair Corralation between HANSOH PHARMAC and MIRAMAR HOTEL
Assuming the 90 days horizon HANSOH PHARMAC HD 00001 is expected to under-perform the MIRAMAR HOTEL. In addition to that, HANSOH PHARMAC is 6.91 times more volatile than MIRAMAR HOTEL INV. It trades about -0.05 of its total potential returns per unit of risk. MIRAMAR HOTEL INV is currently generating about 0.0 per unit of volatility. If you would invest 113.00 in MIRAMAR HOTEL INV on October 17, 2024 and sell it today you would earn a total of 0.00 from holding MIRAMAR HOTEL INV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HANSOH PHARMAC HD 00001 vs. MIRAMAR HOTEL INV
Performance |
| Timeline |
| HANSOH PHARMAC HD |
| MIRAMAR HOTEL INV |
HANSOH PHARMAC and MIRAMAR HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HANSOH PHARMAC and MIRAMAR HOTEL
The main advantage of trading using opposite HANSOH PHARMAC and MIRAMAR HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANSOH PHARMAC position performs unexpectedly, MIRAMAR 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 MIRAMAR HOTEL will offset losses from the drop in MIRAMAR HOTEL's long position.| HANSOH PHARMAC vs. Canon Marketing Japan | HANSOH PHARMAC vs. Sunny Optical Technology | HANSOH PHARMAC vs. TRADELINK ELECTRON | HANSOH PHARMAC vs. FAST RETAIL ADR |
| MIRAMAR HOTEL vs. MPH Health Care | MIRAMAR HOTEL vs. Cardinal Health | MIRAMAR HOTEL vs. CLOVER HEALTH INV | MIRAMAR HOTEL vs. Computershare Limited |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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