Correlation Between Bilendi and Hotel Majestic
Can any of the company-specific risk be diversified away by investing in both Bilendi and Hotel Majestic 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 Bilendi and Hotel Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilendi and Hotel Majestic Cannes, you can compare the effects of market volatilities on Bilendi and Hotel Majestic 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 Bilendi with a short position of Hotel Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilendi and Hotel Majestic.
Diversification Opportunities for Bilendi and Hotel Majestic
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bilendi and Hotel is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bilendi and Hotel Majestic Cannes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Majestic Cannes and Bilendi 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 Bilendi are associated (or correlated) with Hotel Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Majestic Cannes has no effect on the direction of Bilendi i.e., Bilendi and Hotel Majestic go up and down completely randomly.
Pair Corralation between Bilendi and Hotel Majestic
If you would invest 520,000 in Hotel Majestic Cannes on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Hotel Majestic Cannes or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bilendi vs. Hotel Majestic Cannes
Performance |
| Timeline |
| Bilendi |
| Hotel Majestic Cannes |
Bilendi and Hotel Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilendi and Hotel Majestic
The main advantage of trading using opposite Bilendi and Hotel Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilendi position performs unexpectedly, Hotel Majestic 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 Hotel Majestic will offset losses from the drop in Hotel Majestic's long position.| Bilendi vs. CMG Cleantech SA | Bilendi vs. Sartorius Stedim Biotech | Bilendi vs. Exail Technologies SA | Bilendi vs. Gaztransport Technigaz SAS |
| Hotel Majestic vs. Eutelsat Communications SA | Hotel Majestic vs. Novatech Industries SA | Hotel Majestic vs. Axway Software | Hotel Majestic vs. Mauna Kea Technologies |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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