Correlation Between Future Park and Centara Hotels
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By analyzing existing cross correlation between Future Park Leasehold and Centara Hotels Resorts, you can compare the effects of market volatilities on Future Park and Centara Hotels 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 Future Park with a short position of Centara Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Park and Centara Hotels.
Diversification Opportunities for Future Park and Centara Hotels
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Future and Centara is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Future Park Leasehold and Centara Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centara Hotels Resorts and Future Park 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 Future Park Leasehold are associated (or correlated) with Centara Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centara Hotels Resorts has no effect on the direction of Future Park i.e., Future Park and Centara Hotels go up and down completely randomly.
Pair Corralation between Future Park and Centara Hotels
Assuming the 90 days trading horizon Future Park Leasehold is expected to under-perform the Centara Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Future Park Leasehold is 9.86 times less risky than Centara Hotels. The stock trades about -0.22 of its potential returns per unit of risk. The Centara Hotels Resorts is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 452.00 in Centara Hotels Resorts on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Centara Hotels Resorts or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Future Park Leasehold vs. Centara Hotels Resorts
Performance |
| Timeline |
| Future Park Leasehold |
| Centara Hotels Resorts |
Future Park and Centara Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Park and Centara Hotels
The main advantage of trading using opposite Future Park and Centara Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Park position performs unexpectedly, Centara Hotels 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 Centara Hotels will offset losses from the drop in Centara Hotels' long position.| Future Park vs. SAF Special Steel | Future Park vs. Pato Chemical Industry | Future Park vs. Central Retail | Future Park vs. CPR Gomu Industrial |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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