Correlation Between HOTELEST and CIM FINANCIAL
Can any of the company-specific risk be diversified away by investing in both HOTELEST and CIM FINANCIAL 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 HOTELEST and CIM FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HOTELEST LTD and CIM FINANCIAL SERVICES, you can compare the effects of market volatilities on HOTELEST and CIM FINANCIAL 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 HOTELEST with a short position of CIM FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOTELEST and CIM FINANCIAL.
Diversification Opportunities for HOTELEST and CIM FINANCIAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HOTELEST and CIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HOTELEST LTD and CIM FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIM FINANCIAL SERVICES and HOTELEST 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 HOTELEST LTD are associated (or correlated) with CIM FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIM FINANCIAL SERVICES has no effect on the direction of HOTELEST i.e., HOTELEST and CIM FINANCIAL go up and down completely randomly.
Pair Corralation between HOTELEST and CIM FINANCIAL
If you would invest 1,675 in HOTELEST LTD on September 1, 2024 and sell it today you would earn a total of 0.00 from holding HOTELEST LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOTELEST LTD vs. CIM FINANCIAL SERVICES
Performance |
| Timeline |
| HOTELEST LTD |
| CIM FINANCIAL SERVICES |
HOTELEST and CIM FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOTELEST and CIM FINANCIAL
The main advantage of trading using opposite HOTELEST and CIM FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOTELEST position performs unexpectedly, CIM FINANCIAL 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 CIM FINANCIAL will offset losses from the drop in CIM FINANCIAL's long position.| HOTELEST vs. FINCORP INVESTMENT LTD | HOTELEST vs. MCB GROUP LTD | HOTELEST vs. CAUDAN DEVELOPMENT LTD | HOTELEST vs. SUN LIMITED |
| CIM FINANCIAL vs. FINCORP INVESTMENT LTD | CIM FINANCIAL vs. MCB GROUP LTD | CIM FINANCIAL vs. CAUDAN DEVELOPMENT LTD | CIM FINANCIAL vs. SUN LIMITED |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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