Correlation Between Hotel Property and Staude Capital
Can any of the company-specific risk be diversified away by investing in both Hotel Property and Staude Capital 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 Staude Capital 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 Staude Capital Global, you can compare the effects of market volatilities on Hotel Property and Staude Capital 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 Staude Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Property and Staude Capital.
Diversification Opportunities for Hotel Property and Staude Capital
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hotel and Staude is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Property Investments and Staude Capital Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staude Capital Global 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 Staude Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staude Capital Global has no effect on the direction of Hotel Property i.e., Hotel Property and Staude Capital go up and down completely randomly.
Pair Corralation between Hotel Property and Staude Capital
Assuming the 90 days trading horizon Hotel Property Investments is expected to generate 0.65 times more return on investment than Staude Capital. However, Hotel Property Investments is 1.53 times less risky than Staude Capital. It trades about 0.34 of its potential returns per unit of risk. Staude Capital Global is currently generating about -0.07 per unit of risk. If you would invest 356.00 in Hotel Property Investments on September 5, 2024 and sell it today you would earn a total of 17.00 from holding Hotel Property Investments or generate 4.78% 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. Staude Capital Global
Performance |
| Timeline |
| Hotel Property Inves |
| Staude Capital Global |
Hotel Property and Staude Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Property and Staude Capital
The main advantage of trading using opposite Hotel Property and Staude Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Property position performs unexpectedly, Staude Capital 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 Staude Capital will offset losses from the drop in Staude Capital's long position.| Hotel Property vs. Scentre Group | Hotel Property vs. Vicinity Centres Re | Hotel Property vs. Charter Hall Retail | Hotel Property vs. Carindale Property Trust |
| Staude Capital vs. TTG Fintech | Staude Capital vs. Dug Technology | Staude Capital vs. Thorney Technologies | Staude Capital vs. Viva Leisure |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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