Correlation Between Ramsay Gnrale and Host Hotels
Can any of the company-specific risk be diversified away by investing in both Ramsay Gnrale and Host Hotels 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 Ramsay Gnrale and Host Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramsay Gnrale de and Host Hotels Resorts, you can compare the effects of market volatilities on Ramsay Gnrale and Host 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 Ramsay Gnrale with a short position of Host Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Gnrale and Host Hotels.
Diversification Opportunities for Ramsay Gnrale and Host Hotels
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ramsay and Host is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Gnrale de and Host Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Host Hotels Resorts and Ramsay Gnrale 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 Ramsay Gnrale de are associated (or correlated) with Host Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Host Hotels Resorts has no effect on the direction of Ramsay Gnrale i.e., Ramsay Gnrale and Host Hotels go up and down completely randomly.
Pair Corralation between Ramsay Gnrale and Host Hotels
Assuming the 90 days horizon Ramsay Gnrale de is expected to under-perform the Host Hotels. In addition to that, Ramsay Gnrale is 1.35 times more volatile than Host Hotels Resorts. It trades about -0.37 of its total potential returns per unit of risk. Host Hotels Resorts is currently generating about -0.11 per unit of volatility. If you would invest 1,660 in Host Hotels Resorts on November 2, 2024 and sell it today you would lose (50.00) from holding Host Hotels Resorts or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ramsay Gnrale de vs. Host Hotels Resorts
Performance |
| Timeline |
| Ramsay Gnrale de |
| Host Hotels Resorts |
Ramsay Gnrale and Host Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Gnrale and Host Hotels
The main advantage of trading using opposite Ramsay Gnrale and Host Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Gnrale position performs unexpectedly, Host 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 Host Hotels will offset losses from the drop in Host Hotels' long position.| Ramsay Gnrale vs. SOUTHWEST AIRLINES | Ramsay Gnrale vs. JAPAN AIRLINES | Ramsay Gnrale vs. American Airlines Group | Ramsay Gnrale vs. International Consolidated Airlines |
| Host Hotels vs. The Hanover Insurance | Host Hotels vs. Direct Line Insurance | Host Hotels vs. Planet Fitness | Host Hotels vs. Universal Health Realty |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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