Correlation Between Impiana Hotels and Aeon Credit
Can any of the company-specific risk be diversified away by investing in both Impiana Hotels and Aeon Credit 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 Impiana Hotels and Aeon Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impiana Hotels Bhd and Aeon Credit Service, you can compare the effects of market volatilities on Impiana Hotels and Aeon Credit 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 Impiana Hotels with a short position of Aeon Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impiana Hotels and Aeon Credit.
Diversification Opportunities for Impiana Hotels and Aeon Credit
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Impiana and Aeon is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Impiana Hotels Bhd and Aeon Credit Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Credit Service and Impiana Hotels 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 Impiana Hotels Bhd are associated (or correlated) with Aeon Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Credit Service has no effect on the direction of Impiana Hotels i.e., Impiana Hotels and Aeon Credit go up and down completely randomly.
Pair Corralation between Impiana Hotels and Aeon Credit
Assuming the 90 days trading horizon Impiana Hotels is expected to generate 1.61 times less return on investment than Aeon Credit. In addition to that, Impiana Hotels is 2.94 times more volatile than Aeon Credit Service. It trades about 0.01 of its total potential returns per unit of risk. Aeon Credit Service is currently generating about 0.05 per unit of volatility. If you would invest 610.00 in Aeon Credit Service on August 27, 2024 and sell it today you would earn a total of 70.00 from holding Aeon Credit Service or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impiana Hotels Bhd vs. Aeon Credit Service
Performance |
| Timeline |
| Impiana Hotels Bhd |
| Aeon Credit Service |
Impiana Hotels and Aeon Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impiana Hotels and Aeon Credit
The main advantage of trading using opposite Impiana Hotels and Aeon Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impiana Hotels position performs unexpectedly, Aeon Credit 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 Aeon Credit will offset losses from the drop in Aeon Credit's long position.| Impiana Hotels vs. Digistar Bhd | Impiana Hotels vs. Minetech Resources Bhd | Impiana Hotels vs. OpenSys M Bhd | Impiana Hotels vs. Insas Bhd |
| Aeon Credit vs. Digistar Bhd | Aeon Credit vs. Minetech Resources Bhd | Aeon Credit vs. OpenSys M Bhd | Aeon Credit vs. Insas 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |