Correlation Between Host Hotels and COMINTL BANK
Can any of the company-specific risk be diversified away by investing in both Host Hotels and COMINTL BANK 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 Host Hotels and COMINTL BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Host Hotels Resorts and COMINTL BANK ADR1, you can compare the effects of market volatilities on Host Hotels and COMINTL BANK 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 Host Hotels with a short position of COMINTL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and COMINTL BANK.
Diversification Opportunities for Host Hotels and COMINTL BANK
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Host and COMINTL is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts and COMINTL BANK ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMINTL BANK ADR1 and Host Hotels 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 Host Hotels Resorts are associated (or correlated) with COMINTL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMINTL BANK ADR1 has no effect on the direction of Host Hotels i.e., Host Hotels and COMINTL BANK go up and down completely randomly.
Pair Corralation between Host Hotels and COMINTL BANK
Assuming the 90 days horizon Host Hotels Resorts is expected to generate 0.93 times more return on investment than COMINTL BANK. However, Host Hotels Resorts is 1.08 times less risky than COMINTL BANK. It trades about 0.19 of its potential returns per unit of risk. COMINTL BANK ADR1 is currently generating about 0.01 per unit of risk. If you would invest 1,580 in Host Hotels Resorts on September 1, 2024 and sell it today you would earn a total of 150.00 from holding Host Hotels Resorts or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Host Hotels Resorts vs. COMINTL BANK ADR1
Performance |
| Timeline |
| Host Hotels Resorts |
| COMINTL BANK ADR1 |
Host Hotels and COMINTL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and COMINTL BANK
The main advantage of trading using opposite Host Hotels and COMINTL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels position performs unexpectedly, COMINTL BANK 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 COMINTL BANK will offset losses from the drop in COMINTL BANK's long position.| Host Hotels vs. Pebblebrook Hotel Trust | Host Hotels vs. Sunstone Hotel Investors | Host Hotels vs. ASHFORD HOSPITTRUST |
| COMINTL BANK vs. BNP Paribas SA | COMINTL BANK vs. Socit Gnrale Socit | COMINTL BANK vs. Commerzbank AG | COMINTL BANK vs. Commerzbank AG |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |