Correlation Between Centara Hotels and CP Tower
Can any of the company-specific risk be diversified away by investing in both Centara Hotels and CP Tower 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 Centara Hotels and CP Tower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centara Hotels Resorts and CP Tower Growth, you can compare the effects of market volatilities on Centara Hotels and CP Tower 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 Centara Hotels with a short position of CP Tower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centara Hotels and CP Tower.
Diversification Opportunities for Centara Hotels and CP Tower
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Centara and CPTGF is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Centara Hotels Resorts and CP Tower Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP Tower Growth and Centara 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 Centara Hotels Resorts are associated (or correlated) with CP Tower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP Tower Growth has no effect on the direction of Centara Hotels i.e., Centara Hotels and CP Tower go up and down completely randomly.
Pair Corralation between Centara Hotels and CP Tower
Assuming the 90 days trading horizon Centara Hotels Resorts is expected to generate 220.62 times more return on investment than CP Tower. However, Centara Hotels is 220.62 times more volatile than CP Tower Growth. It trades about 0.19 of its potential returns per unit of risk. CP Tower Growth is currently generating about 0.0 per unit of risk. If you would invest 450.00 in Centara Hotels Resorts on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Centara Hotels Resorts or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.82% |
| Values | Daily Returns |
Centara Hotels Resorts vs. CP Tower Growth
Performance |
| Timeline |
| Centara Hotels Resorts |
| CP Tower Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Centara Hotels and CP Tower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centara Hotels and CP Tower
The main advantage of trading using opposite Centara Hotels and CP Tower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centara Hotels position performs unexpectedly, CP Tower 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 CP Tower will offset losses from the drop in CP Tower's long position.| Centara Hotels vs. LH Shopping Centers | Centara Hotels vs. HEMARAJ INDUSTRIAL PROPERTY | Centara Hotels vs. Land and Houses |
| CP Tower vs. WHA Premium Growth | CP Tower vs. CPN Commercial Growth | CP Tower vs. Centara Hotels Resorts | CP Tower vs. Future Park Leasehold |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |