Correlation Between Gentor Resources and Meliá Hotels
Can any of the company-specific risk be diversified away by investing in both Gentor Resources and Meliá 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 Gentor Resources and Meliá Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gentor Resources and Meli Hotels International, you can compare the effects of market volatilities on Gentor Resources and Meliá 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 Gentor Resources with a short position of Meliá Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentor Resources and Meliá Hotels.
Diversification Opportunities for Gentor Resources and Meliá Hotels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gentor and Meliá is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gentor Resources and Meli Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meli Hotels International and Gentor Resources 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 Gentor Resources are associated (or correlated) with Meliá Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meli Hotels International has no effect on the direction of Gentor Resources i.e., Gentor Resources and Meliá Hotels go up and down completely randomly.
Pair Corralation between Gentor Resources and Meliá Hotels
If you would invest 3.00 in Gentor Resources on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Gentor Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentor Resources vs. Meli Hotels International
Performance |
| Timeline |
| Gentor Resources |
| Meli Hotels International |
Gentor Resources and Meliá Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentor Resources and Meliá Hotels
The main advantage of trading using opposite Gentor Resources and Meliá Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentor Resources position performs unexpectedly, Meliá 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 Meliá Hotels will offset losses from the drop in Meliá Hotels' long position.| Gentor Resources vs. Genfit | Gentor Resources vs. Boston Properties | Gentor Resources vs. JBG SMITH Properties | Gentor Resources vs. Mid Atlantic Home Health |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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