Correlation Between COVIVIO HOTELS and KORN FERRY
Can any of the company-specific risk be diversified away by investing in both COVIVIO HOTELS and KORN FERRY 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 KORN FERRY 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 KORN FERRY INTL, you can compare the effects of market volatilities on COVIVIO HOTELS and KORN FERRY 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 KORN FERRY. Check out your portfolio center. Please also check ongoing floating volatility patterns of COVIVIO HOTELS and KORN FERRY.
Diversification Opportunities for COVIVIO HOTELS and KORN FERRY
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COVIVIO and KORN is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding COVIVIO HOTELS INH and KORN FERRY INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KORN FERRY INTL 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 KORN FERRY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KORN FERRY INTL has no effect on the direction of COVIVIO HOTELS i.e., COVIVIO HOTELS and KORN FERRY go up and down completely randomly.
Pair Corralation between COVIVIO HOTELS and KORN FERRY
Assuming the 90 days horizon COVIVIO HOTELS INH is expected to generate 1.25 times more return on investment than KORN FERRY. However, COVIVIO HOTELS is 1.25 times more volatile than KORN FERRY INTL. It trades about 0.41 of its potential returns per unit of risk. KORN FERRY INTL is currently generating about -0.18 per unit of risk. If you would invest 1,815 in COVIVIO HOTELS INH on October 10, 2024 and sell it today you would earn a total of 255.00 from holding COVIVIO HOTELS INH or generate 14.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COVIVIO HOTELS INH vs. KORN FERRY INTL
Performance |
| Timeline |
| COVIVIO HOTELS INH |
| KORN FERRY INTL |
COVIVIO HOTELS and KORN FERRY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COVIVIO HOTELS and KORN FERRY
The main advantage of trading using opposite COVIVIO HOTELS and KORN FERRY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COVIVIO HOTELS position performs unexpectedly, KORN FERRY 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 KORN FERRY will offset losses from the drop in KORN FERRY's long position.| COVIVIO HOTELS vs. SEALED AIR | COVIVIO HOTELS vs. Forsys Metals Corp | COVIVIO HOTELS vs. ALTAIR RES INC | COVIVIO HOTELS vs. Wizz Air Holdings |
| KORN FERRY vs. MPH Health Care | KORN FERRY vs. FEMALE HEALTH | KORN FERRY vs. RYMAN HEALTHCAR | KORN FERRY vs. COVIVIO HOTELS INH |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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