Correlation Between Grande Asset and OHTL Public
Can any of the company-specific risk be diversified away by investing in both Grande Asset and OHTL Public 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 Grande Asset and OHTL Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Asset Hotels and OHTL Public, you can compare the effects of market volatilities on Grande Asset and OHTL Public 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 Grande Asset with a short position of OHTL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Asset and OHTL Public.
Diversification Opportunities for Grande Asset and OHTL Public
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grande and OHTL is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Grande Asset Hotels and OHTL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OHTL Public and Grande Asset 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 Grande Asset Hotels are associated (or correlated) with OHTL Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OHTL Public has no effect on the direction of Grande Asset i.e., Grande Asset and OHTL Public go up and down completely randomly.
Pair Corralation between Grande Asset and OHTL Public
Assuming the 90 days trading horizon Grande Asset is expected to generate 1.01 times less return on investment than OHTL Public. In addition to that, Grande Asset is 1.01 times more volatile than OHTL Public. It trades about 0.05 of its total potential returns per unit of risk. OHTL Public is currently generating about 0.06 per unit of volatility. If you would invest 46,000 in OHTL Public on November 3, 2024 and sell it today you would lose (14,600) from holding OHTL Public or give up 31.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grande Asset Hotels vs. OHTL Public
Performance |
| Timeline |
| Grande Asset Hotels |
| OHTL Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grande Asset and OHTL Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Asset and OHTL Public
The main advantage of trading using opposite Grande Asset and OHTL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Asset position performs unexpectedly, OHTL Public 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 OHTL Public will offset losses from the drop in OHTL Public's long position.| Grande Asset vs. Indara Insurance Public | Grande Asset vs. The Navakij Insurance | Grande Asset vs. NSL Foods Public | Grande Asset vs. Information and Communication |
| OHTL Public vs. Laguna Resorts Hotels | OHTL Public vs. Nonthavej Hospital Public | OHTL Public vs. Ocean Glass Public | OHTL Public vs. Royal Orchid Hotel |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |