Correlation Between COPLAND ROAD and InterContinental
Can any of the company-specific risk be diversified away by investing in both COPLAND ROAD and InterContinental 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 COPLAND ROAD and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COPLAND ROAD CAPITAL and InterContinental Hotels Group, you can compare the effects of market volatilities on COPLAND ROAD and InterContinental 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 COPLAND ROAD with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPLAND ROAD and InterContinental.
Diversification Opportunities for COPLAND ROAD and InterContinental
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between COPLAND and InterContinental is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding COPLAND ROAD CAPITAL and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and COPLAND ROAD 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 COPLAND ROAD CAPITAL are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of COPLAND ROAD i.e., COPLAND ROAD and InterContinental go up and down completely randomly.
Pair Corralation between COPLAND ROAD and InterContinental
Assuming the 90 days horizon COPLAND ROAD CAPITAL is expected to under-perform the InterContinental. In addition to that, COPLAND ROAD is 1.66 times more volatile than InterContinental Hotels Group. It trades about -0.1 of its total potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.26 per unit of volatility. If you would invest 9,950 in InterContinental Hotels Group on August 30, 2024 and sell it today you would earn a total of 1,850 from holding InterContinental Hotels Group or generate 18.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
COPLAND ROAD CAPITAL vs. InterContinental Hotels Group
Performance |
| Timeline |
| COPLAND ROAD CAPITAL |
| InterContinental Hotels |
COPLAND ROAD and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COPLAND ROAD and InterContinental
The main advantage of trading using opposite COPLAND ROAD and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPLAND ROAD position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| COPLAND ROAD vs. CapitaLand Investment Limited | COPLAND ROAD vs. NIPPON STEEL SPADR | COPLAND ROAD vs. AOYAMA TRADING | COPLAND ROAD vs. PennantPark Investment |
| InterContinental vs. AECOM TECHNOLOGY | InterContinental vs. Amkor Technology | InterContinental vs. QBE Insurance Group | InterContinental vs. Align Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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