Correlation Between Central Retail and Grande Hospitality
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By analyzing existing cross correlation between Central Retail and Grande Hospitality Real, you can compare the effects of market volatilities on Central Retail and Grande Hospitality 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 Central Retail with a short position of Grande Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Retail and Grande Hospitality.
Diversification Opportunities for Central Retail and Grande Hospitality
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Central and Grande is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Central Retail and Grande Hospitality Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grande Hospitality Real and Central Retail 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 Central Retail are associated (or correlated) with Grande Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grande Hospitality Real has no effect on the direction of Central Retail i.e., Central Retail and Grande Hospitality go up and down completely randomly.
Pair Corralation between Central Retail and Grande Hospitality
Assuming the 90 days trading horizon Central Retail is expected to generate 2.9 times more return on investment than Grande Hospitality. However, Central Retail is 2.9 times more volatile than Grande Hospitality Real. It trades about 0.04 of its potential returns per unit of risk. Grande Hospitality Real is currently generating about -0.04 per unit of risk. If you would invest 3,400 in Central Retail on October 20, 2024 and sell it today you would earn a total of 50.00 from holding Central Retail or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Retail vs. Grande Hospitality Real
Performance |
| Timeline |
| Central Retail |
| Grande Hospitality Real |
Central Retail and Grande Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Retail and Grande Hospitality
The main advantage of trading using opposite Central Retail and Grande Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Retail position performs unexpectedly, Grande Hospitality 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 Grande Hospitality will offset losses from the drop in Grande Hospitality's long position.| Central Retail vs. Moshi Moshi Retail | Central Retail vs. Ekarat Engineering Public | Central Retail vs. VGI Public | Central Retail vs. Kasikornbank Public |
| Grande Hospitality vs. Wattanapat Hospital Trang | Grande Hospitality vs. Aikchol Hospital Public | Grande Hospitality vs. PTT OIL RETAIL | Grande Hospitality vs. Thai Nakarin Hospital |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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