Correlation Between INTERCONT HOTELS and STANLEY ELECTRIC
Can any of the company-specific risk be diversified away by investing in both INTERCONT HOTELS and STANLEY ELECTRIC 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 STANLEY ELECTRIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTERCONT HOTELS and STANLEY ELECTRIC CO, you can compare the effects of market volatilities on INTERCONT HOTELS and STANLEY ELECTRIC 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 STANLEY ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERCONT HOTELS and STANLEY ELECTRIC.
Diversification Opportunities for INTERCONT HOTELS and STANLEY ELECTRIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTERCONT and STANLEY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INTERCONT HOTELS and STANLEY ELECTRIC CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLEY ELECTRIC 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 STANLEY ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLEY ELECTRIC has no effect on the direction of INTERCONT HOTELS i.e., INTERCONT HOTELS and STANLEY ELECTRIC go up and down completely randomly.
Pair Corralation between INTERCONT HOTELS and STANLEY ELECTRIC
If you would invest 2,460 in STANLEY ELECTRIC CO on November 28, 2024 and sell it today you would earn a total of 0.00 from holding STANLEY ELECTRIC CO 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 |
INTERCONT HOTELS vs. STANLEY ELECTRIC CO
Performance |
| Timeline |
| INTERCONT HOTELS |
| STANLEY ELECTRIC |
INTERCONT HOTELS and STANLEY ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERCONT HOTELS and STANLEY ELECTRIC
The main advantage of trading using opposite INTERCONT HOTELS and STANLEY ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERCONT HOTELS position performs unexpectedly, STANLEY ELECTRIC 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 STANLEY ELECTRIC will offset losses from the drop in STANLEY ELECTRIC'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 |
| STANLEY ELECTRIC vs. SCANSOURCE | STANLEY ELECTRIC vs. Ares Management Corp | STANLEY ELECTRIC vs. Thai Beverage Public | STANLEY ELECTRIC vs. Coor Service 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |