Correlation Between INTERCONT HOTELS and MAVEN WIRELESS
Can any of the company-specific risk be diversified away by investing in both INTERCONT HOTELS and MAVEN 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 MAVEN 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 MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on INTERCONT HOTELS and MAVEN 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 MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERCONT HOTELS and MAVEN WIRELESS.
Diversification Opportunities for INTERCONT HOTELS and MAVEN WIRELESS
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTERCONT and MAVEN is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding INTERCONT HOTELS and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of INTERCONT HOTELS i.e., INTERCONT HOTELS and MAVEN WIRELESS go up and down completely randomly.
Pair Corralation between INTERCONT HOTELS and MAVEN WIRELESS
Assuming the 90 days trading horizon INTERCONT HOTELS is expected to generate 31.81 times less return on investment than MAVEN WIRELESS. But when comparing it to its historical volatility, INTERCONT HOTELS is 3.65 times less risky than MAVEN WIRELESS. It trades about 0.0 of its potential returns per unit of risk. MAVEN WIRELESS SWEDEN is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 82.00 in MAVEN WIRELESS SWEDEN on October 17, 2024 and sell it today you would earn a total of 1.00 from holding MAVEN WIRELESS SWEDEN or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERCONT HOTELS vs. MAVEN WIRELESS SWEDEN
Performance |
| Timeline |
| INTERCONT HOTELS |
| MAVEN WIRELESS SWEDEN |
INTERCONT HOTELS and MAVEN WIRELESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERCONT HOTELS and MAVEN WIRELESS
The main advantage of trading using opposite INTERCONT HOTELS and MAVEN WIRELESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERCONT HOTELS position performs unexpectedly, MAVEN 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 MAVEN WIRELESS will offset losses from the drop in MAVEN WIRELESS's long position.| INTERCONT HOTELS vs. Packaging of | INTERCONT HOTELS vs. ERSTE GP BNK | INTERCONT HOTELS vs. W R Berkley | INTERCONT HOTELS vs. News Corporation |
| MAVEN WIRELESS vs. INTERCONT HOTELS | MAVEN WIRELESS vs. Regal Hotels International | MAVEN WIRELESS vs. Scandinavian Tobacco Group | MAVEN WIRELESS vs. Wyndham 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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