Correlation Between Impiana Hotels and TAS Offshore
Can any of the company-specific risk be diversified away by investing in both Impiana Hotels and TAS Offshore 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 TAS Offshore 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 TAS Offshore Bhd, you can compare the effects of market volatilities on Impiana Hotels and TAS Offshore 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 TAS Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impiana Hotels and TAS Offshore.
Diversification Opportunities for Impiana Hotels and TAS Offshore
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Impiana and TAS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Impiana Hotels Bhd and TAS Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAS Offshore Bhd 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 TAS Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAS Offshore Bhd has no effect on the direction of Impiana Hotels i.e., Impiana Hotels and TAS Offshore go up and down completely randomly.
Pair Corralation between Impiana Hotels and TAS Offshore
Assuming the 90 days trading horizon Impiana Hotels Bhd is expected to under-perform the TAS Offshore. In addition to that, Impiana Hotels is 1.03 times more volatile than TAS Offshore Bhd. It trades about -0.02 of its total potential returns per unit of risk. TAS Offshore Bhd is currently generating about 0.04 per unit of volatility. If you would invest 53.00 in TAS Offshore Bhd on August 28, 2024 and sell it today you would earn a total of 11.00 from holding TAS Offshore Bhd or generate 20.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.51% |
| Values | Daily Returns |
Impiana Hotels Bhd vs. TAS Offshore Bhd
Performance |
| Timeline |
| Impiana Hotels Bhd |
| TAS Offshore Bhd |
Impiana Hotels and TAS Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impiana Hotels and TAS Offshore
The main advantage of trading using opposite Impiana Hotels and TAS Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impiana Hotels position performs unexpectedly, TAS Offshore 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 TAS Offshore will offset losses from the drop in TAS Offshore'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 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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