Correlation Between EGRNF and Holiday Island
Can any of the company-specific risk be diversified away by investing in both EGRNF and Holiday Island 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 EGRNF and Holiday Island into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EGRNF and Holiday Island Holdings, you can compare the effects of market volatilities on EGRNF and Holiday Island 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 EGRNF with a short position of Holiday Island. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGRNF and Holiday Island.
Diversification Opportunities for EGRNF and Holiday Island
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EGRNF and Holiday is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding EGRNF and Holiday Island Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holiday Island Holdings and EGRNF 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 EGRNF are associated (or correlated) with Holiday Island. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holiday Island Holdings has no effect on the direction of EGRNF i.e., EGRNF and Holiday Island go up and down completely randomly.
Pair Corralation between EGRNF and Holiday Island
Assuming the 90 days horizon EGRNF is expected to generate 3.98 times more return on investment than Holiday Island. However, EGRNF is 3.98 times more volatile than Holiday Island Holdings. It trades about 0.15 of its potential returns per unit of risk. Holiday Island Holdings is currently generating about 0.07 per unit of risk. If you would invest 9.00 in EGRNF on August 24, 2024 and sell it today you would lose (8.97) from holding EGRNF or give up 99.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
EGRNF vs. Holiday Island Holdings
Performance |
| Timeline |
| EGRNF |
| Holiday Island Holdings |
EGRNF and Holiday Island Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGRNF and Holiday Island
The main advantage of trading using opposite EGRNF and Holiday Island positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGRNF position performs unexpectedly, Holiday Island 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 Holiday Island will offset losses from the drop in Holiday Island's long position.| EGRNF vs. Hong Kong Land | EGRNF vs. Wharf Holdings | EGRNF vs. Holiday Island Holdings | EGRNF vs. Sun Hung Kai |
| Holiday Island vs. Smart REIT | Holiday Island vs. Phillips Edison Co | Holiday Island vs. Choice Properties Real | Holiday Island vs. Simon Property Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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