Correlation Between CONSTANCE HOTELS and CIM FINANCIAL
Can any of the company-specific risk be diversified away by investing in both CONSTANCE HOTELS and CIM FINANCIAL 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 CIM FINANCIAL 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 CIM FINANCIAL SERVICES, you can compare the effects of market volatilities on CONSTANCE HOTELS and CIM FINANCIAL 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 CIM FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSTANCE HOTELS and CIM FINANCIAL.
Diversification Opportunities for CONSTANCE HOTELS and CIM FINANCIAL
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between CONSTANCE and CIM is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding CONSTANCE HOTELS SERVICES and CIM FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIM FINANCIAL SERVICES 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 CIM FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIM FINANCIAL SERVICES has no effect on the direction of CONSTANCE HOTELS i.e., CONSTANCE HOTELS and CIM FINANCIAL go up and down completely randomly.
Pair Corralation between CONSTANCE HOTELS and CIM FINANCIAL
If you would invest 1,195 in CIM FINANCIAL SERVICES on September 3, 2024 and sell it today you would earn a total of 5.00 from holding CIM FINANCIAL SERVICES or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CONSTANCE HOTELS SERVICES vs. CIM FINANCIAL SERVICES
Performance |
| Timeline |
| CONSTANCE HOTELS SERVICES |
| CIM FINANCIAL SERVICES |
CONSTANCE HOTELS and CIM FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSTANCE HOTELS and CIM FINANCIAL
The main advantage of trading using opposite CONSTANCE HOTELS and CIM FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSTANCE HOTELS position performs unexpectedly, CIM FINANCIAL 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 CIM FINANCIAL will offset losses from the drop in CIM FINANCIAL's long position.| CONSTANCE HOTELS vs. FINCORP INVESTMENT LTD | CONSTANCE HOTELS vs. MCB GROUP LIMITED | CONSTANCE HOTELS vs. MUA LTD | CONSTANCE HOTELS vs. LOTTOTECH LTD |
| CIM FINANCIAL vs. FINCORP INVESTMENT LTD | CIM FINANCIAL vs. MCB GROUP LIMITED | CIM FINANCIAL vs. MUA LTD | CIM FINANCIAL vs. LOTTOTECH LTD |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |