Correlation Between COVIVIO HOTELS and G III
Can any of the company-specific risk be diversified away by investing in both COVIVIO HOTELS and G III 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 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 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of COVIVIO HOTELS and G III.
Diversification Opportunities for COVIVIO HOTELS and G III
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between COVIVIO and GI4 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. 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 go up and down completely randomly.
Pair Corralation between COVIVIO HOTELS and G III
Assuming the 90 days horizon COVIVIO HOTELS INH is expected to under-perform the G III. But the stock apears to be less risky and, when comparing its historical volatility, COVIVIO HOTELS INH is 1.02 times less risky than G III. The stock trades about -0.17 of its potential returns per unit of risk. The G III Apparel Group is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 3,100 in G III Apparel Group on October 30, 2024 and sell it today you would lose (60.00) from holding G III Apparel Group or give up 1.94% 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 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COVIVIO HOTELS and G III
The main advantage of trading using opposite COVIVIO HOTELS and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COVIVIO HOTELS position performs unexpectedly, G III 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 will offset losses from the drop in G III's long position.| COVIVIO HOTELS vs. CHINA TONTINE WINES | COVIVIO HOTELS vs. GBS Software AG | COVIVIO HOTELS vs. Grupo Carso SAB | COVIVIO HOTELS vs. Take Two Interactive Software |
| G III vs. Cardinal Health | G III vs. OPKO HEALTH | G III vs. Air Transport Services | G III vs. Fortescue Metals Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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