Correlation Between EURASIAN MINERALS and InterContinental
Can any of the company-specific risk be diversified away by investing in both EURASIAN MINERALS 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 EURASIAN MINERALS and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EURASIAN MINERALS and InterContinental Hotels Group, you can compare the effects of market volatilities on EURASIAN MINERALS 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 EURASIAN MINERALS with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of EURASIAN MINERALS and InterContinental.
Diversification Opportunities for EURASIAN MINERALS and InterContinental
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EURASIAN and InterContinental is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding EURASIAN MINERALS and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and EURASIAN MINERALS 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 EURASIAN MINERALS 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 EURASIAN MINERALS i.e., EURASIAN MINERALS and InterContinental go up and down completely randomly.
Pair Corralation between EURASIAN MINERALS and InterContinental
Assuming the 90 days trading horizon EURASIAN MINERALS is expected to generate 1.13 times more return on investment than InterContinental. However, EURASIAN MINERALS is 1.13 times more volatile than InterContinental Hotels Group. It trades about 0.08 of its potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.06 per unit of risk. If you would invest 166.00 in EURASIAN MINERALS on September 28, 2024 and sell it today you would earn a total of 4.00 from holding EURASIAN MINERALS or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EURASIAN MINERALS vs. InterContinental Hotels Group
Performance |
| Timeline |
| EURASIAN MINERALS |
| InterContinental Hotels |
EURASIAN MINERALS and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EURASIAN MINERALS and InterContinental
The main advantage of trading using opposite EURASIAN MINERALS and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EURASIAN MINERALS 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.| EURASIAN MINERALS vs. GALENA MINING LTD | EURASIAN MINERALS vs. Chesapeake Utilities | EURASIAN MINERALS vs. GRIFFIN MINING LTD | EURASIAN MINERALS vs. Kaiser Aluminum |
| InterContinental vs. Marriott International | InterContinental vs. Hilton Worldwide Holdings | InterContinental vs. H World Group | InterContinental vs. Hyatt Hotels |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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