Correlation Between Artemis Resources and Choice Hotels
Can any of the company-specific risk be diversified away by investing in both Artemis Resources and Choice Hotels 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 Artemis Resources and Choice Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artemis Resources and Choice Hotels International, you can compare the effects of market volatilities on Artemis Resources and Choice Hotels 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 Artemis Resources with a short position of Choice Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Resources and Choice Hotels.
Diversification Opportunities for Artemis Resources and Choice Hotels
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Artemis and Choice is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Resources and Choice Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Hotels Intern and Artemis Resources 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 Artemis Resources are associated (or correlated) with Choice Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Hotels Intern has no effect on the direction of Artemis Resources i.e., Artemis Resources and Choice Hotels go up and down completely randomly.
Pair Corralation between Artemis Resources and Choice Hotels
Assuming the 90 days trading horizon Artemis Resources is expected to generate 13.23 times less return on investment than Choice Hotels. In addition to that, Artemis Resources is 7.57 times more volatile than Choice Hotels International. It trades about 0.0 of its total potential returns per unit of risk. Choice Hotels International is currently generating about 0.21 per unit of volatility. If you would invest 12,100 in Choice Hotels International on September 12, 2024 and sell it today you would earn a total of 1,800 from holding Choice Hotels International or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Artemis Resources vs. Choice Hotels International
Performance |
| Timeline |
| Artemis Resources |
| Choice Hotels Intern |
Artemis Resources and Choice Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artemis Resources and Choice Hotels
The main advantage of trading using opposite Artemis Resources and Choice Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Resources position performs unexpectedly, Choice Hotels 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 Choice Hotels will offset losses from the drop in Choice Hotels' long position.| Artemis Resources vs. Summit Materials | Artemis Resources vs. GOODYEAR T RUBBER | Artemis Resources vs. SOFI TECHNOLOGIES | Artemis Resources vs. VULCAN MATERIALS |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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