Correlation Between Camellia Plc and InterContinental
Can any of the company-specific risk be diversified away by investing in both Camellia Plc and InterContinental 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 Camellia Plc and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camellia Plc and InterContinental Hotels Group, you can compare the effects of market volatilities on Camellia Plc and InterContinental 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 Camellia Plc with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camellia Plc and InterContinental.
Diversification Opportunities for Camellia Plc and InterContinental
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Camellia and InterContinental is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Camellia Plc and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and Camellia Plc 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 Camellia Plc are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of Camellia Plc i.e., Camellia Plc and InterContinental go up and down completely randomly.
Pair Corralation between Camellia Plc and InterContinental
Assuming the 90 days trading horizon Camellia Plc is expected to generate 2.77 times more return on investment than InterContinental. However, Camellia Plc is 2.77 times more volatile than InterContinental Hotels Group. It trades about 0.21 of its potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.08 per unit of risk. If you would invest 436,000 in Camellia Plc on September 24, 2024 and sell it today you would earn a total of 55,000 from holding Camellia Plc or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camellia Plc vs. InterContinental Hotels Group
Performance |
| Timeline |
| Camellia Plc |
| InterContinental Hotels |
Camellia Plc and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camellia Plc and InterContinental
The main advantage of trading using opposite Camellia Plc and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camellia Plc position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| Camellia Plc vs. Uniper SE | Camellia Plc vs. Mulberry Group PLC | Camellia Plc vs. London Security Plc | Camellia Plc vs. Triad Group PLC |
| InterContinental vs. National Atomic Co | InterContinental vs. Flutter Entertainment PLC | InterContinental vs. Camellia Plc | InterContinental vs. Marwyn Value Investors |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |