Correlation Between Hotel Property and Ingenia Communities
Can any of the company-specific risk be diversified away by investing in both Hotel Property and Ingenia Communities 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 Ingenia Communities 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 Ingenia Communities Group, you can compare the effects of market volatilities on Hotel Property and Ingenia Communities 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 Ingenia Communities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Property and Ingenia Communities.
Diversification Opportunities for Hotel Property and Ingenia Communities
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hotel and Ingenia is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Property Investments and Ingenia Communities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenia Communities 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 Ingenia Communities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenia Communities has no effect on the direction of Hotel Property i.e., Hotel Property and Ingenia Communities go up and down completely randomly.
Pair Corralation between Hotel Property and Ingenia Communities
Assuming the 90 days trading horizon Hotel Property Investments is expected to generate 0.4 times more return on investment than Ingenia Communities. However, Hotel Property Investments is 2.52 times less risky than Ingenia Communities. It trades about 0.49 of its potential returns per unit of risk. Ingenia Communities Group is currently generating about 0.13 per unit of risk. If you would invest 349.00 in Hotel Property Investments on August 28, 2024 and sell it today you would earn a total of 23.00 from holding Hotel Property Investments or generate 6.59% 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. Ingenia Communities Group
Performance |
| Timeline |
| Hotel Property Inves |
| Ingenia Communities |
Hotel Property and Ingenia Communities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Property and Ingenia Communities
The main advantage of trading using opposite Hotel Property and Ingenia Communities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Property position performs unexpectedly, Ingenia Communities 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 Ingenia Communities will offset losses from the drop in Ingenia Communities' long position.| Hotel Property vs. Scentre Group | Hotel Property vs. Vicinity Centres Re | Hotel Property vs. Charter Hall Retail | Hotel Property vs. Cromwell Property Group |
| Ingenia Communities vs. Readytech Holdings | Ingenia Communities vs. RLF AgTech | Ingenia Communities vs. Hotel Property Investments | Ingenia Communities vs. Clime Investment Management |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance |