Correlation Between CONSTANCE HOTELS and AFREXIMBANK
Can any of the company-specific risk be diversified away by investing in both CONSTANCE HOTELS and AFREXIMBANK 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 CONSTANCE HOTELS and AFREXIMBANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CONSTANCE HOTELS SERVICES and AFREXIMBANK, you can compare the effects of market volatilities on CONSTANCE HOTELS and AFREXIMBANK 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 CONSTANCE HOTELS with a short position of AFREXIMBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSTANCE HOTELS and AFREXIMBANK.
Diversification Opportunities for CONSTANCE HOTELS and AFREXIMBANK
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CONSTANCE and AFREXIMBANK is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding CONSTANCE HOTELS SERVICES and AFREXIMBANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFREXIMBANK and CONSTANCE HOTELS 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 CONSTANCE HOTELS SERVICES are associated (or correlated) with AFREXIMBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFREXIMBANK has no effect on the direction of CONSTANCE HOTELS i.e., CONSTANCE HOTELS and AFREXIMBANK go up and down completely randomly.
Pair Corralation between CONSTANCE HOTELS and AFREXIMBANK
If you would invest 270.00 in AFREXIMBANK on September 15, 2024 and sell it today you would earn a total of 0.00 from holding AFREXIMBANK 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 |
CONSTANCE HOTELS SERVICES vs. AFREXIMBANK
Performance |
| Timeline |
| CONSTANCE HOTELS SERVICES |
| AFREXIMBANK |
CONSTANCE HOTELS and AFREXIMBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSTANCE HOTELS and AFREXIMBANK
The main advantage of trading using opposite CONSTANCE HOTELS and AFREXIMBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSTANCE HOTELS position performs unexpectedly, AFREXIMBANK 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 AFREXIMBANK will offset losses from the drop in AFREXIMBANK's long position.| CONSTANCE HOTELS vs. ASTORIA INVESTMENT LTD | CONSTANCE HOTELS vs. FINCORP INVESTMENT LTD | CONSTANCE HOTELS vs. PHOENIX INVESTMENT PANY | CONSTANCE HOTELS vs. NATIONAL INVESTMENT TRUST |
| AFREXIMBANK vs. ABC BANKING PORATION | AFREXIMBANK vs. CIM FINANCIAL SERVICES | AFREXIMBANK vs. PSG FINANCIAL SERVICES | AFREXIMBANK vs. MCB INDIA SOVEREIGN |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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