Correlation Between Green Panda and NexPoint Hospitality
Can any of the company-specific risk be diversified away by investing in both Green Panda and NexPoint Hospitality 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 Green Panda and NexPoint Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Panda Capital and NexPoint Hospitality Trust, you can compare the effects of market volatilities on Green Panda and NexPoint Hospitality 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 Green Panda with a short position of NexPoint Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Panda and NexPoint Hospitality.
Diversification Opportunities for Green Panda and NexPoint Hospitality
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Green and NexPoint is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Panda Capital and NexPoint Hospitality Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NexPoint Hospitality and Green Panda 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 Green Panda Capital are associated (or correlated) with NexPoint Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NexPoint Hospitality has no effect on the direction of Green Panda i.e., Green Panda and NexPoint Hospitality go up and down completely randomly.
Pair Corralation between Green Panda and NexPoint Hospitality
If you would invest 1.50 in NexPoint Hospitality Trust on September 2, 2024 and sell it today you would earn a total of 29.50 from holding NexPoint Hospitality Trust or generate 1966.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Green Panda Capital vs. NexPoint Hospitality Trust
Performance |
| Timeline |
| Green Panda Capital |
| NexPoint Hospitality |
Green Panda and NexPoint Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Panda and NexPoint Hospitality
The main advantage of trading using opposite Green Panda and NexPoint Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Panda position performs unexpectedly, NexPoint Hospitality 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 NexPoint Hospitality will offset losses from the drop in NexPoint Hospitality's long position.| Green Panda vs. NovaGold Resources | Green Panda vs. HPQ Silicon Resources | Green Panda vs. Eastwood Bio Medical Canada | Green Panda vs. Diamond Fields Resources |
| NexPoint Hospitality vs. Oculus VisionTech | NexPoint Hospitality vs. Quisitive Technology Solutions | NexPoint Hospitality vs. Computer Modelling Group | NexPoint Hospitality vs. Totally Hip Technologies |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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