Correlation Between Holiday Island and Yanlord Land
Can any of the company-specific risk be diversified away by investing in both Holiday Island and Yanlord Land 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 Holiday Island and Yanlord Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holiday Island Holdings and Yanlord Land Group, you can compare the effects of market volatilities on Holiday Island and Yanlord Land 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 Holiday Island with a short position of Yanlord Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holiday Island and Yanlord Land.
Diversification Opportunities for Holiday Island and Yanlord Land
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Holiday and Yanlord is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Holiday Island Holdings and Yanlord Land Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yanlord Land Group and Holiday Island 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 Holiday Island Holdings are associated (or correlated) with Yanlord Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yanlord Land Group has no effect on the direction of Holiday Island i.e., Holiday Island and Yanlord Land go up and down completely randomly.
Pair Corralation between Holiday Island and Yanlord Land
Given the investment horizon of 90 days Holiday Island Holdings is expected to generate 11.92 times more return on investment than Yanlord Land. However, Holiday Island is 11.92 times more volatile than Yanlord Land Group. It trades about 0.07 of its potential returns per unit of risk. Yanlord Land Group is currently generating about -0.01 per unit of risk. If you would invest 1.76 in Holiday Island Holdings on September 12, 2024 and sell it today you would earn a total of 0.64 from holding Holiday Island Holdings or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holiday Island Holdings vs. Yanlord Land Group
Performance |
| Timeline |
| Holiday Island Holdings |
| Yanlord Land Group |
Holiday Island and Yanlord Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holiday Island and Yanlord Land
The main advantage of trading using opposite Holiday Island and Yanlord Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holiday Island position performs unexpectedly, Yanlord Land 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 Yanlord Land will offset losses from the drop in Yanlord Land's long position.| Holiday Island vs. Ashford Hospitality Trust | Holiday Island vs. Ashford Hospitality Trust | Holiday Island vs. Braemar Hotels Resorts | Holiday Island vs. Braemar Hotels Resorts |
| Yanlord Land vs. CECO Environmental Corp | Yanlord Land vs. Sabre Corpo | Yanlord Land vs. Griffon | Yanlord Land vs. Hurco Companies |
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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