Correlation Between Atresmedia Corporacin and NH Hoteles
Can any of the company-specific risk be diversified away by investing in both Atresmedia Corporacin and NH Hoteles 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 Atresmedia Corporacin and NH Hoteles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia Corporacin de and NH Hoteles, you can compare the effects of market volatilities on Atresmedia Corporacin and NH Hoteles 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 Atresmedia Corporacin with a short position of NH Hoteles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia Corporacin and NH Hoteles.
Diversification Opportunities for Atresmedia Corporacin and NH Hoteles
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atresmedia and NHH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia Corporacin de and NH Hoteles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Hoteles and Atresmedia Corporacin 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 Atresmedia Corporacin de are associated (or correlated) with NH Hoteles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Hoteles has no effect on the direction of Atresmedia Corporacin i.e., Atresmedia Corporacin and NH Hoteles go up and down completely randomly.
Pair Corralation between Atresmedia Corporacin and NH Hoteles
Assuming the 90 days trading horizon Atresmedia Corporacin de is expected to generate 0.78 times more return on investment than NH Hoteles. However, Atresmedia Corporacin de is 1.29 times less risky than NH Hoteles. It trades about 0.09 of its potential returns per unit of risk. NH Hoteles is currently generating about 0.03 per unit of risk. If you would invest 352.00 in Atresmedia Corporacin de on August 26, 2024 and sell it today you would earn a total of 99.00 from holding Atresmedia Corporacin de or generate 28.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia Corporacin de vs. NH Hoteles
Performance |
| Timeline |
| Atresmedia Corporacin |
| NH Hoteles |
Atresmedia Corporacin and NH Hoteles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia Corporacin and NH Hoteles
The main advantage of trading using opposite Atresmedia Corporacin and NH Hoteles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia Corporacin position performs unexpectedly, NH Hoteles 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 NH Hoteles will offset losses from the drop in NH Hoteles' long position.| Atresmedia Corporacin vs. Mapfre | Atresmedia Corporacin vs. ENCE Energa y | Atresmedia Corporacin vs. Acerinox | Atresmedia Corporacin vs. Enags SA |
| NH Hoteles vs. International Consolidated Airlines | NH Hoteles vs. Merlin Properties SOCIMI | NH Hoteles vs. Aena SA | NH Hoteles vs. Acerinox |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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