Correlation Between GreenX Metals and Host Hotels
Can any of the company-specific risk be diversified away by investing in both GreenX Metals 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 GreenX Metals and Host Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Host Hotels Resorts, you can compare the effects of market volatilities on GreenX Metals 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 GreenX Metals with a short position of Host Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Host Hotels.
Diversification Opportunities for GreenX Metals and Host Hotels
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between GreenX and Host is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals 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 GreenX Metals 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 GreenX Metals 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 GreenX Metals i.e., GreenX Metals and Host Hotels go up and down completely randomly.
Pair Corralation between GreenX Metals and Host Hotels
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Host Hotels. In addition to that, GreenX Metals is 1.58 times more volatile than Host Hotels Resorts. It trades about -0.32 of its total potential returns per unit of risk. Host Hotels Resorts is currently generating about 0.12 per unit of volatility. If you would invest 1,779 in Host Hotels Resorts on August 31, 2024 and sell it today you would earn a total of 72.00 from holding Host Hotels Resorts or generate 4.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Host Hotels Resorts
Performance |
| Timeline |
| GreenX Metals |
| Host Hotels Resorts |
GreenX Metals and Host Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Host Hotels
The main advantage of trading using opposite GreenX Metals and Host Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals 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.| GreenX Metals vs. Centamin PLC | GreenX Metals vs. Central Asia Metals | GreenX Metals vs. Anglo Asian Mining | GreenX Metals vs. Metals Exploration Plc |
| Host Hotels vs. Neometals | Host Hotels vs. Coor Service Management | Host Hotels vs. Aeorema Communications Plc | Host Hotels vs. JLEN Environmental Assets |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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