Correlation Between Covivio Hotels and Impulse Fitness
Can any of the company-specific risk be diversified away by investing in both Covivio Hotels and Impulse Fitness 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 Impulse Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Covivio Hotels and Impulse Fitness Solutions, you can compare the effects of market volatilities on Covivio Hotels and Impulse Fitness 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 Impulse Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Covivio Hotels and Impulse Fitness.
Diversification Opportunities for Covivio Hotels and Impulse Fitness
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Covivio and Impulse is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Covivio Hotels and Impulse Fitness Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Fitness Solutions 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 Impulse Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Fitness Solutions has no effect on the direction of Covivio Hotels i.e., Covivio Hotels and Impulse Fitness go up and down completely randomly.
Pair Corralation between Covivio Hotels and Impulse Fitness
Assuming the 90 days trading horizon Covivio Hotels is expected to generate 0.71 times more return on investment than Impulse Fitness. However, Covivio Hotels is 1.4 times less risky than Impulse Fitness. It trades about 0.07 of its potential returns per unit of risk. Impulse Fitness Solutions is currently generating about -0.07 per unit of risk. If you would invest 1,275 in Covivio Hotels on September 19, 2024 and sell it today you would earn a total of 620.00 from holding Covivio Hotels or generate 48.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.87% |
| Values | Daily Returns |
Covivio Hotels vs. Impulse Fitness Solutions
Performance |
| Timeline |
| Covivio Hotels |
| Impulse Fitness Solutions |
Covivio Hotels and Impulse Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Covivio Hotels and Impulse Fitness
The main advantage of trading using opposite Covivio Hotels and Impulse Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Covivio Hotels position performs unexpectedly, Impulse Fitness 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 Impulse Fitness will offset losses from the drop in Impulse Fitness' long position.| Covivio Hotels vs. Covivio SA | Covivio Hotels vs. Altarea SCA | Covivio Hotels vs. Icade SA | Covivio Hotels vs. Gecina SA |
| Impulse Fitness vs. SA Catana Group | Impulse Fitness vs. Fountaine Pajo | Impulse Fitness vs. Piscines Desjoyaux SA |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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