Correlation Between Turism Hotelur and Promateris
Can any of the company-specific risk be diversified away by investing in both Turism Hotelur and Promateris 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 Turism Hotelur and Promateris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turism Hotelur and Promateris SA, you can compare the effects of market volatilities on Turism Hotelur and Promateris 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 Turism Hotelur with a short position of Promateris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turism Hotelur and Promateris.
Diversification Opportunities for Turism Hotelur and Promateris
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turism and Promateris is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Turism Hotelur and Promateris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promateris SA and Turism Hotelur 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 Turism Hotelur are associated (or correlated) with Promateris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promateris SA has no effect on the direction of Turism Hotelur i.e., Turism Hotelur and Promateris go up and down completely randomly.
Pair Corralation between Turism Hotelur and Promateris
Assuming the 90 days trading horizon Turism Hotelur is expected to generate 1.01 times more return on investment than Promateris. However, Turism Hotelur is 1.01 times more volatile than Promateris SA. It trades about 0.06 of its potential returns per unit of risk. Promateris SA is currently generating about -0.02 per unit of risk. If you would invest 22.00 in Turism Hotelur on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Turism Hotelur or generate 90.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.28% |
| Values | Daily Returns |
Turism Hotelur vs. Promateris SA
Performance |
| Timeline |
| Turism Hotelur |
| Promateris SA |
Turism Hotelur and Promateris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turism Hotelur and Promateris
The main advantage of trading using opposite Turism Hotelur and Promateris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turism Hotelur position performs unexpectedly, Promateris 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 Promateris will offset losses from the drop in Promateris' long position.| Turism Hotelur vs. Teraplast Bist | Turism Hotelur vs. Electroarges S | Turism Hotelur vs. Comvex SA | Turism Hotelur vs. Feper SA |
| Promateris vs. Digi Communications NV | Promateris vs. Infinity Capital Investments | Promateris vs. Compania Hoteliera InterContinental | Promateris vs. Turism Hotelur |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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