Correlation Between Hotel Property and British Amer
Can any of the company-specific risk be diversified away by investing in both Hotel Property and British Amer 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 Hotel Property and British Amer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Property Investments and Bailador Technology Invest, you can compare the effects of market volatilities on Hotel Property and British Amer 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 Hotel Property with a short position of British Amer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Property and British Amer.
Diversification Opportunities for Hotel Property and British Amer
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hotel and British is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Property Investments and Bailador Technology Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bailador Technology and Hotel Property 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 Hotel Property Investments are associated (or correlated) with British Amer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bailador Technology has no effect on the direction of Hotel Property i.e., Hotel Property and British Amer go up and down completely randomly.
Pair Corralation between Hotel Property and British Amer
Assuming the 90 days trading horizon Hotel Property Investments is expected to generate 1.18 times more return on investment than British Amer. However, Hotel Property is 1.18 times more volatile than Bailador Technology Invest. It trades about 0.1 of its potential returns per unit of risk. Bailador Technology Invest is currently generating about 0.0 per unit of risk. If you would invest 275.00 in Hotel Property Investments on October 22, 2024 and sell it today you would earn a total of 101.00 from holding Hotel Property Investments or generate 36.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Property Investments vs. Bailador Technology Invest
Performance |
| Timeline |
| Hotel Property Inves |
| Bailador Technology |
Hotel Property and British Amer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Property and British Amer
The main advantage of trading using opposite Hotel Property and British Amer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Property position performs unexpectedly, British Amer 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 British Amer will offset losses from the drop in British Amer's long position.| Hotel Property vs. Fisher Paykel Healthcare | Hotel Property vs. Health and Plant | Hotel Property vs. Global Health | Hotel Property vs. Austco Healthcare |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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