Correlation Between INTERCONT HOTELS and NURAN WIRELESS
Can any of the company-specific risk be diversified away by investing in both INTERCONT HOTELS and NURAN WIRELESS 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 INTERCONT HOTELS and NURAN WIRELESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTERCONT HOTELS and NURAN WIRELESS INC, you can compare the effects of market volatilities on INTERCONT HOTELS and NURAN WIRELESS 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 INTERCONT HOTELS with a short position of NURAN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERCONT HOTELS and NURAN WIRELESS.
Diversification Opportunities for INTERCONT HOTELS and NURAN WIRELESS
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTERCONT and NURAN is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding INTERCONT HOTELS and NURAN WIRELESS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NURAN WIRELESS INC and INTERCONT HOTELS 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 INTERCONT HOTELS are associated (or correlated) with NURAN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NURAN WIRELESS INC has no effect on the direction of INTERCONT HOTELS i.e., INTERCONT HOTELS and NURAN WIRELESS go up and down completely randomly.
Pair Corralation between INTERCONT HOTELS and NURAN WIRELESS
Assuming the 90 days trading horizon INTERCONT HOTELS is expected to generate 0.73 times more return on investment than NURAN WIRELESS. However, INTERCONT HOTELS is 1.37 times less risky than NURAN WIRELESS. It trades about 0.24 of its potential returns per unit of risk. NURAN WIRELESS INC is currently generating about -0.16 per unit of risk. If you would invest 10,200 in INTERCONT HOTELS on September 4, 2024 and sell it today you would earn a total of 1,500 from holding INTERCONT HOTELS or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERCONT HOTELS vs. NURAN WIRELESS INC
Performance |
| Timeline |
| INTERCONT HOTELS |
| NURAN WIRELESS INC |
INTERCONT HOTELS and NURAN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERCONT HOTELS and NURAN WIRELESS
The main advantage of trading using opposite INTERCONT HOTELS and NURAN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERCONT HOTELS position performs unexpectedly, NURAN WIRELESS 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 NURAN WIRELESS will offset losses from the drop in NURAN WIRELESS's long position.| INTERCONT HOTELS vs. Hilton Worldwide Holdings | INTERCONT HOTELS vs. Hyatt Hotels | INTERCONT HOTELS vs. ACCOR SPADR NEW |
| NURAN WIRELESS vs. INTERCONT HOTELS | NURAN WIRELESS vs. Meli Hotels International | NURAN WIRELESS vs. Pebblebrook Hotel Trust | NURAN WIRELESS vs. Playa Hotels Resorts |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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