Correlation Between Impiana Hotels and Dataprep Holdings
Can any of the company-specific risk be diversified away by investing in both Impiana Hotels and Dataprep 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 Dataprep 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 Dataprep Holdings Bhd, you can compare the effects of market volatilities on Impiana Hotels and Dataprep 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 Dataprep Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impiana Hotels and Dataprep Holdings.
Diversification Opportunities for Impiana Hotels and Dataprep Holdings
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Impiana and Dataprep is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Impiana Hotels Bhd and Dataprep Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dataprep 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 Dataprep Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dataprep Holdings Bhd has no effect on the direction of Impiana Hotels i.e., Impiana Hotels and Dataprep Holdings go up and down completely randomly.
Pair Corralation between Impiana Hotels and Dataprep Holdings
If you would invest 21.00 in Impiana Hotels Bhd on October 17, 2024 and sell it today you would earn a total of 2.00 from holding Impiana Hotels Bhd or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Impiana Hotels Bhd vs. Dataprep Holdings Bhd
Performance |
| Timeline |
| Impiana Hotels Bhd |
| Dataprep Holdings Bhd |
Impiana Hotels and Dataprep Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impiana Hotels and Dataprep Holdings
The main advantage of trading using opposite Impiana Hotels and Dataprep Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impiana Hotels position performs unexpectedly, Dataprep 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 Dataprep Holdings will offset losses from the drop in Dataprep Holdings' long position.| Impiana Hotels vs. Magni Tech Industries | Impiana Hotels vs. Resintech Bhd | Impiana Hotels vs. Aurelius Technologies Bhd | Impiana Hotels vs. Systech Bhd |
| Dataprep Holdings vs. Riverview Rubber Estates | Dataprep Holdings vs. Bank Islam Malaysia | Dataprep Holdings vs. Impiana Hotels Bhd | Dataprep Holdings vs. Sports Toto Berhad |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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