Correlation Between HEMARAJ INDUSTRIAL and Quality Hospitality
Can any of the company-specific risk be diversified away by investing in both HEMARAJ INDUSTRIAL and Quality 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 HEMARAJ INDUSTRIAL and Quality Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEMARAJ INDUSTRIAL PROPERTY and Quality Hospitality Leasehold, you can compare the effects of market volatilities on HEMARAJ INDUSTRIAL and Quality 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 HEMARAJ INDUSTRIAL with a short position of Quality Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEMARAJ INDUSTRIAL and Quality Hospitality.
Diversification Opportunities for HEMARAJ INDUSTRIAL and Quality Hospitality
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between HEMARAJ and Quality is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding HEMARAJ INDUSTRIAL PROPERTY and Quality Hospitality Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quality Hospitality and HEMARAJ INDUSTRIAL 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 HEMARAJ INDUSTRIAL PROPERTY are associated (or correlated) with Quality Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quality Hospitality has no effect on the direction of HEMARAJ INDUSTRIAL i.e., HEMARAJ INDUSTRIAL and Quality Hospitality go up and down completely randomly.
Pair Corralation between HEMARAJ INDUSTRIAL and Quality Hospitality
Assuming the 90 days trading horizon HEMARAJ INDUSTRIAL PROPERTY is expected to generate 3.56 times more return on investment than Quality Hospitality. However, HEMARAJ INDUSTRIAL is 3.56 times more volatile than Quality Hospitality Leasehold. It trades about 0.15 of its potential returns per unit of risk. Quality Hospitality Leasehold is currently generating about 0.04 per unit of risk. If you would invest 470.00 in HEMARAJ INDUSTRIAL PROPERTY on September 14, 2024 and sell it today you would earn a total of 26.00 from holding HEMARAJ INDUSTRIAL PROPERTY or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
HEMARAJ INDUSTRIAL PROPERTY vs. Quality Hospitality Leasehold
Performance |
| Timeline |
| HEMARAJ INDUSTRIAL |
| Quality Hospitality |
HEMARAJ INDUSTRIAL and Quality Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEMARAJ INDUSTRIAL and Quality Hospitality
The main advantage of trading using opposite HEMARAJ INDUSTRIAL and Quality Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEMARAJ INDUSTRIAL position performs unexpectedly, Quality 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 Quality Hospitality will offset losses from the drop in Quality Hospitality's long position.| HEMARAJ INDUSTRIAL vs. Quality Houses Property | HEMARAJ INDUSTRIAL vs. The Erawan Group | HEMARAJ INDUSTRIAL vs. Jay Mart Public | HEMARAJ INDUSTRIAL vs. Airports of Thailand |
| Quality Hospitality vs. Quality Houses Hotel | Quality Hospitality vs. Quality Houses Property | Quality Hospitality vs. HEMARAJ INDUSTRIAL PROPERTY |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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