Correlation Between CVR Medical and Choice Hotels
Can any of the company-specific risk be diversified away by investing in both CVR Medical 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 CVR Medical and Choice Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Medical Corp and Choice Hotels International, you can compare the effects of market volatilities on CVR Medical 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 CVR Medical with a short position of Choice Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Medical and Choice Hotels.
Diversification Opportunities for CVR Medical and Choice Hotels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CVR and Choice is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVR Medical Corp 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 CVR Medical 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 CVR Medical Corp 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 CVR Medical i.e., CVR Medical and Choice Hotels go up and down completely randomly.
Pair Corralation between CVR Medical and Choice Hotels
If you would invest 13,700 in Choice Hotels International on November 7, 2024 and sell it today you would earn a total of 300.00 from holding Choice Hotels International or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
CVR Medical Corp vs. Choice Hotels International
Performance |
| Timeline |
| CVR Medical Corp |
| Choice Hotels Intern |
CVR Medical and Choice Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Medical and Choice Hotels
The main advantage of trading using opposite CVR Medical and Choice Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Medical 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.| CVR Medical vs. OPKO HEALTH | CVR Medical vs. Tokyu Construction Co | CVR Medical vs. CeoTronics AG | CVR Medical vs. Waste Management |
| Choice Hotels vs. NEWELL RUBBERMAID | Choice Hotels vs. Sumitomo Rubber Industries | Choice Hotels vs. Sixt Leasing SE | Choice Hotels vs. CVW CLEANTECH INC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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