Correlation Between COVIVIO HOTELS and G-III APPAREL
Can any of the company-specific risk be diversified away by investing in both COVIVIO HOTELS and G-III APPAREL 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 COVIVIO HOTELS and G-III APPAREL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COVIVIO HOTELS INH and G III APPAREL GROUP, you can compare the effects of market volatilities on COVIVIO HOTELS and G-III APPAREL 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 COVIVIO HOTELS with a short position of G-III APPAREL. Check out your portfolio center. Please also check ongoing floating volatility patterns of COVIVIO HOTELS and G-III APPAREL.
Diversification Opportunities for COVIVIO HOTELS and G-III APPAREL
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between COVIVIO and G-III is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding COVIVIO HOTELS INH and G III APPAREL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III APPAREL and COVIVIO 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 COVIVIO HOTELS INH are associated (or correlated) with G-III APPAREL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III APPAREL has no effect on the direction of COVIVIO HOTELS i.e., COVIVIO HOTELS and G-III APPAREL go up and down completely randomly.
Pair Corralation between COVIVIO HOTELS and G-III APPAREL
Assuming the 90 days horizon COVIVIO HOTELS INH is expected to generate 0.51 times more return on investment than G-III APPAREL. However, COVIVIO HOTELS INH is 1.98 times less risky than G-III APPAREL. It trades about -0.32 of its potential returns per unit of risk. G III APPAREL GROUP is currently generating about -0.18 per unit of risk. If you would invest 2,070 in COVIVIO HOTELS INH on November 7, 2024 and sell it today you would lose (150.00) from holding COVIVIO HOTELS INH or give up 7.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COVIVIO HOTELS INH vs. G III APPAREL GROUP
Performance |
| Timeline |
| COVIVIO HOTELS INH |
| G III APPAREL |
COVIVIO HOTELS and G-III APPAREL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COVIVIO HOTELS and G-III APPAREL
The main advantage of trading using opposite COVIVIO HOTELS and G-III APPAREL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COVIVIO HOTELS position performs unexpectedly, G-III APPAREL 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 G-III APPAREL will offset losses from the drop in G-III APPAREL's long position.| COVIVIO HOTELS vs. Gol Intelligent Airlines | COVIVIO HOTELS vs. Fukuyama Transporting Co | COVIVIO HOTELS vs. Gaztransport Technigaz SA | COVIVIO HOTELS vs. Air Transport Services |
| G-III APPAREL vs. Spirent Communications plc | G-III APPAREL vs. TITAN MACHINERY | G-III APPAREL vs. Singapore Telecommunications Limited | G-III APPAREL vs. Rocket Internet SE |
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 CEOs Directory module to screen CEOs from public companies around the world.
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