Correlation Between Canso Select and NexPoint Hospitality
Can any of the company-specific risk be diversified away by investing in both Canso Select and NexPoint Hospitality 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 Canso Select and NexPoint Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canso Select Opportunities and NexPoint Hospitality Trust, you can compare the effects of market volatilities on Canso Select and NexPoint 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 Canso Select with a short position of NexPoint Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canso Select and NexPoint Hospitality.
Diversification Opportunities for Canso Select and NexPoint Hospitality
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Canso and NexPoint is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Canso Select Opportunities and NexPoint Hospitality Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexPoint Hospitality and Canso Select 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 Canso Select Opportunities are associated (or correlated) with NexPoint Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexPoint Hospitality has no effect on the direction of Canso Select i.e., Canso Select and NexPoint Hospitality go up and down completely randomly.
Pair Corralation between Canso Select and NexPoint Hospitality
If you would invest 1.50 in NexPoint Hospitality Trust on September 2, 2024 and sell it today you would earn a total of 29.50 from holding NexPoint Hospitality Trust or generate 1966.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Canso Select Opportunities vs. NexPoint Hospitality Trust
Performance |
| Timeline |
| Canso Select Opportu |
| NexPoint Hospitality |
Canso Select and NexPoint Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canso Select and NexPoint Hospitality
The main advantage of trading using opposite Canso Select and NexPoint Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canso Select position performs unexpectedly, NexPoint 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 NexPoint Hospitality will offset losses from the drop in NexPoint Hospitality's long position.| Canso Select vs. DIRTT Environmental Solutions | Canso Select vs. Gfl Environmental Holdings | Canso Select vs. SalesforceCom CDR | Canso Select vs. Xtract One Technologies |
| NexPoint Hospitality vs. Oculus VisionTech | NexPoint Hospitality vs. Quisitive Technology Solutions | NexPoint Hospitality vs. Computer Modelling Group | NexPoint Hospitality vs. Totally Hip Technologies |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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