Correlation Between QL Resources and Impiana Hotels
Can any of the company-specific risk be diversified away by investing in both QL Resources and Impiana Hotels 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 QL Resources and Impiana Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QL Resources Bhd and Impiana Hotels Bhd, you can compare the effects of market volatilities on QL Resources and Impiana Hotels 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 QL Resources with a short position of Impiana Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of QL Resources and Impiana Hotels.
Diversification Opportunities for QL Resources and Impiana Hotels
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 7084 and Impiana is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding QL Resources Bhd and Impiana Hotels Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impiana Hotels Bhd and QL Resources 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 QL Resources Bhd are associated (or correlated) with Impiana Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impiana Hotels Bhd has no effect on the direction of QL Resources i.e., QL Resources and Impiana Hotels go up and down completely randomly.
Pair Corralation between QL Resources and Impiana Hotels
Assuming the 90 days trading horizon QL Resources is expected to generate 3.35 times less return on investment than Impiana Hotels. But when comparing it to its historical volatility, QL Resources Bhd is 4.68 times less risky than Impiana Hotels. It trades about 0.12 of its potential returns per unit of risk. Impiana Hotels Bhd is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9.50 in Impiana Hotels Bhd on September 4, 2024 and sell it today you would earn a total of 11.50 from holding Impiana Hotels Bhd or generate 121.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
QL Resources Bhd vs. Impiana Hotels Bhd
Performance |
| Timeline |
| QL Resources Bhd |
| Impiana Hotels Bhd |
QL Resources and Impiana Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QL Resources and Impiana Hotels
The main advantage of trading using opposite QL Resources and Impiana Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QL Resources position performs unexpectedly, Impiana Hotels 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 Impiana Hotels will offset losses from the drop in Impiana Hotels' long position.| QL Resources vs. Keck Seng Malaysia | QL Resources vs. Minetech Resources Bhd | QL Resources vs. Swift Haulage Bhd | QL Resources vs. Insas Bhd |
| Impiana Hotels vs. Minetech Resources Bhd | Impiana Hotels vs. Swift Haulage Bhd | Impiana Hotels vs. Insas Bhd | Impiana Hotels vs. Bina Darulaman Bhd |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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