Correlation Between Covivio Hotels and GECI International
Can any of the company-specific risk be diversified away by investing in both Covivio Hotels and GECI International 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 Covivio Hotels and GECI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Covivio Hotels and GECI International SA, you can compare the effects of market volatilities on Covivio Hotels and GECI International 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 Covivio Hotels with a short position of GECI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Covivio Hotels and GECI International.
Diversification Opportunities for Covivio Hotels and GECI International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Covivio and GECI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Covivio Hotels and GECI International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GECI International and Covivio 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 Covivio Hotels are associated (or correlated) with GECI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GECI International has no effect on the direction of Covivio Hotels i.e., Covivio Hotels and GECI International go up and down completely randomly.
Pair Corralation between Covivio Hotels and GECI International
If you would invest 1,275 in Covivio Hotels on September 19, 2024 and sell it today you would earn a total of 600.00 from holding Covivio Hotels or generate 47.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Covivio Hotels vs. GECI International SA
Performance |
| Timeline |
| Covivio Hotels |
| GECI International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Covivio Hotels and GECI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Covivio Hotels and GECI International
The main advantage of trading using opposite Covivio Hotels and GECI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Covivio Hotels position performs unexpectedly, GECI International 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 GECI International will offset losses from the drop in GECI International's long position.| Covivio Hotels vs. Covivio SA | Covivio Hotels vs. Altarea SCA | Covivio Hotels vs. Icade SA | Covivio Hotels vs. Gecina SA |
| GECI International vs. Covivio Hotels | GECI International vs. Avenir Telecom SA | GECI International vs. Invibes Advertising NV | GECI International vs. Pullup Entertainment Socit |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |