Correlation Between Advanced Information and Grande Hospitality
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By analyzing existing cross correlation between Advanced Information Technology and Grande Hospitality Real, you can compare the effects of market volatilities on Advanced Information and Grande Hospitality 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 Advanced Information with a short position of Grande Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Information and Grande Hospitality.
Diversification Opportunities for Advanced Information and Grande Hospitality
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advanced and Grande is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Information Technolog and Grande Hospitality Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Hospitality Real and Advanced Information 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 Advanced Information Technology are associated (or correlated) with Grande Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Hospitality Real has no effect on the direction of Advanced Information i.e., Advanced Information and Grande Hospitality go up and down completely randomly.
Pair Corralation between Advanced Information and Grande Hospitality
Assuming the 90 days trading horizon Advanced Information Technology is expected to generate 43.1 times more return on investment than Grande Hospitality. However, Advanced Information is 43.1 times more volatile than Grande Hospitality Real. It trades about 0.04 of its potential returns per unit of risk. Grande Hospitality Real is currently generating about -0.01 per unit of risk. If you would invest 577.00 in Advanced Information Technology on October 13, 2024 and sell it today you would lose (175.00) from holding Advanced Information Technology or give up 30.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Advanced Information Technolog vs. Grande Hospitality Real
Performance |
| Timeline |
| Advanced Information |
| Grande Hospitality Real |
Advanced Information and Grande Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Information and Grande Hospitality
The main advantage of trading using opposite Advanced Information and Grande Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Information position performs unexpectedly, Grande Hospitality 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 Grande Hospitality will offset losses from the drop in Grande Hospitality's long position.| Advanced Information vs. AP Public | Advanced Information vs. Jasmine International Public | Advanced Information vs. Asia Plus Group | Advanced Information vs. Bangchak Public |
| Grande Hospitality vs. Tata Steel Public | Grande Hospitality vs. CSP Steel Center | Grande Hospitality vs. Advanced Information Technology | Grande Hospitality vs. Communication System Solution |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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