Correlation Between Impiana Hotels and FGV Holdings
Can any of the company-specific risk be diversified away by investing in both Impiana Hotels and FGV Holdings 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 FGV Holdings 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 FGV Holdings Bhd, you can compare the effects of market volatilities on Impiana Hotels and FGV Holdings 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 FGV Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impiana Hotels and FGV Holdings.
Diversification Opportunities for Impiana Hotels and FGV Holdings
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Impiana and FGV is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Impiana Hotels Bhd and FGV Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FGV Holdings 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 FGV Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FGV Holdings Bhd has no effect on the direction of Impiana Hotels i.e., Impiana Hotels and FGV Holdings go up and down completely randomly.
Pair Corralation between Impiana Hotels and FGV Holdings
Assuming the 90 days trading horizon Impiana Hotels Bhd is expected to under-perform the FGV Holdings. In addition to that, Impiana Hotels is 2.29 times more volatile than FGV Holdings Bhd. It trades about -0.17 of its total potential returns per unit of risk. FGV Holdings Bhd is currently generating about 0.17 per unit of volatility. If you would invest 109.00 in FGV Holdings Bhd on November 28, 2024 and sell it today you would earn a total of 4.00 from holding FGV Holdings Bhd or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impiana Hotels Bhd vs. FGV Holdings Bhd
Performance |
| Timeline |
| Impiana Hotels Bhd |
| FGV Holdings Bhd |
Impiana Hotels and FGV Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impiana Hotels and FGV Holdings
The main advantage of trading using opposite Impiana Hotels and FGV Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impiana Hotels position performs unexpectedly, FGV Holdings 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 FGV Holdings will offset losses from the drop in FGV Holdings' long position.| Impiana Hotels vs. KPJ Healthcare Bhd | Impiana Hotels vs. Lyc Healthcare Bhd | Impiana Hotels vs. Aeon Credit Service | Impiana Hotels vs. K One Technology Bhd |
| FGV Holdings vs. Aeon Credit Service | FGV Holdings vs. Public Bank Bhd | FGV Holdings vs. Senheng New Retail | FGV Holdings vs. Carlsberg Brewery Malaysia |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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