Correlation Between Hotel Property and Coronado Global
Can any of the company-specific risk be diversified away by investing in both Hotel Property and Coronado Global 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 Coronado Global 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 Coronado Global Resources, you can compare the effects of market volatilities on Hotel Property and Coronado Global 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 Coronado Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Property and Coronado Global.
Diversification Opportunities for Hotel Property and Coronado Global
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hotel and Coronado is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Property Investments and Coronado Global Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronado Global Resources 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 Coronado Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronado Global Resources has no effect on the direction of Hotel Property i.e., Hotel Property and Coronado Global go up and down completely randomly.
Pair Corralation between Hotel Property and Coronado Global
Assuming the 90 days trading horizon Hotel Property Investments is expected to generate 0.56 times more return on investment than Coronado Global. However, Hotel Property Investments is 1.79 times less risky than Coronado Global. It trades about 0.03 of its potential returns per unit of risk. Coronado Global Resources is currently generating about -0.04 per unit of risk. If you would invest 308.00 in Hotel Property Investments on September 2, 2024 and sell it today you would earn a total of 62.00 from holding Hotel Property Investments or generate 20.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Property Investments vs. Coronado Global Resources
Performance |
| Timeline |
| Hotel Property Inves |
| Coronado Global Resources |
Hotel Property and Coronado Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Property and Coronado Global
The main advantage of trading using opposite Hotel Property and Coronado Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Property position performs unexpectedly, Coronado Global 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 Coronado Global will offset losses from the drop in Coronado Global's long position.| Hotel Property vs. Step One Clothing | Hotel Property vs. Homeco Daily Needs | Hotel Property vs. Stelar Metals | Hotel Property vs. Sky Metals |
| Coronado Global vs. Charter Hall Education | Coronado Global vs. Global Health | Coronado Global vs. Black Rock Mining | Coronado Global vs. Epsilon Healthcare |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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