Correlation Between Khiron Life and InterContinental
Can any of the company-specific risk be diversified away by investing in both Khiron Life and InterContinental 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 Khiron Life and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and InterContinental Hotels Group, you can compare the effects of market volatilities on Khiron Life and InterContinental 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 Khiron Life with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and InterContinental.
Diversification Opportunities for Khiron Life and InterContinental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and InterContinental is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and Khiron Life 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 Khiron Life Sciences are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of Khiron Life i.e., Khiron Life and InterContinental go up and down completely randomly.
Pair Corralation between Khiron Life and InterContinental
Assuming the 90 days trading horizon Khiron Life Sciences is expected to under-perform the InterContinental. In addition to that, Khiron Life is 2.66 times more volatile than InterContinental Hotels Group. It trades about -0.04 of its total potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.1 per unit of volatility. If you would invest 6,244 in InterContinental Hotels Group on October 11, 2024 and sell it today you would earn a total of 5,556 from holding InterContinental Hotels Group or generate 88.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Khiron Life Sciences vs. InterContinental Hotels Group
Performance |
| Timeline |
| Khiron Life Sciences |
| InterContinental Hotels |
Khiron Life and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and InterContinental
The main advantage of trading using opposite Khiron Life and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| Khiron Life vs. WT OFFSHORE | Khiron Life vs. SBM OFFSHORE | Khiron Life vs. MINCO SILVER | Khiron Life vs. Geely Automobile Holdings |
| InterContinental vs. Host Hotels Resorts | InterContinental vs. Choice Hotels International | InterContinental vs. Khiron Life Sciences | InterContinental vs. ALGOMA STEEL 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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