Correlation Between Beowulf Mining and PPHE Hotel
Can any of the company-specific risk be diversified away by investing in both Beowulf Mining and PPHE Hotel 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 Beowulf Mining and PPHE Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beowulf Mining and PPHE Hotel Group, you can compare the effects of market volatilities on Beowulf Mining and PPHE Hotel 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 Beowulf Mining with a short position of PPHE Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and PPHE Hotel.
Diversification Opportunities for Beowulf Mining and PPHE Hotel
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Beowulf and PPHE is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining and PPHE Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPHE Hotel Group and Beowulf Mining 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 Beowulf Mining are associated (or correlated) with PPHE Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPHE Hotel Group has no effect on the direction of Beowulf Mining i.e., Beowulf Mining and PPHE Hotel go up and down completely randomly.
Pair Corralation between Beowulf Mining and PPHE Hotel
Assuming the 90 days trading horizon Beowulf Mining is expected to under-perform the PPHE Hotel. In addition to that, Beowulf Mining is 2.8 times more volatile than PPHE Hotel Group. It trades about -0.07 of its total potential returns per unit of risk. PPHE Hotel Group is currently generating about 0.05 per unit of volatility. If you would invest 100,507 in PPHE Hotel Group on November 9, 2024 and sell it today you would earn a total of 36,993 from holding PPHE Hotel Group or generate 36.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.79% |
| Values | Daily Returns |
Beowulf Mining vs. PPHE Hotel Group
Performance |
| Timeline |
| Beowulf Mining |
| PPHE Hotel Group |
Beowulf Mining and PPHE Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beowulf Mining and PPHE Hotel
The main advantage of trading using opposite Beowulf Mining and PPHE Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining position performs unexpectedly, PPHE Hotel 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 PPHE Hotel will offset losses from the drop in PPHE Hotel's long position.| Beowulf Mining vs. Concurrent Technologies Plc | Beowulf Mining vs. Fulcrum Metals PLC | Beowulf Mining vs. SMA Solar Technology | Beowulf Mining vs. First Class Metals |
| PPHE Hotel vs. Check Point Software | PPHE Hotel vs. Pfeiffer Vacuum Technology | PPHE Hotel vs. Fortune Brands Home | PPHE Hotel vs. Allianz Technology Trust |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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