Correlation Between INTERCONT HOTELS and Thermo Fisher
Can any of the company-specific risk be diversified away by investing in both INTERCONT HOTELS and Thermo Fisher 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 Thermo Fisher into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTERCONT HOTELS and Thermo Fisher Scientific, you can compare the effects of market volatilities on INTERCONT HOTELS and Thermo Fisher 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 Thermo Fisher. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERCONT HOTELS and Thermo Fisher.
Diversification Opportunities for INTERCONT HOTELS and Thermo Fisher
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTERCONT and Thermo is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding INTERCONT HOTELS and Thermo Fisher Scientific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermo Fisher Scientific 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 Thermo Fisher. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermo Fisher Scientific has no effect on the direction of INTERCONT HOTELS i.e., INTERCONT HOTELS and Thermo Fisher go up and down completely randomly.
Pair Corralation between INTERCONT HOTELS and Thermo Fisher
Assuming the 90 days trading horizon INTERCONT HOTELS is expected to generate 1.09 times more return on investment than Thermo Fisher. However, INTERCONT HOTELS is 1.09 times more volatile than Thermo Fisher Scientific. It trades about 0.11 of its potential returns per unit of risk. Thermo Fisher Scientific is currently generating about 0.0 per unit of risk. If you would invest 5,278 in INTERCONT HOTELS on September 5, 2024 and sell it today you would earn a total of 6,422 from holding INTERCONT HOTELS or generate 121.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
INTERCONT HOTELS vs. Thermo Fisher Scientific
Performance |
| Timeline |
| INTERCONT HOTELS |
| Thermo Fisher Scientific |
INTERCONT HOTELS and Thermo Fisher Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERCONT HOTELS and Thermo Fisher
The main advantage of trading using opposite INTERCONT HOTELS and Thermo Fisher positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERCONT HOTELS position performs unexpectedly, Thermo Fisher 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 Thermo Fisher will offset losses from the drop in Thermo Fisher'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 |
| Thermo Fisher vs. DALATA HOTEL | Thermo Fisher vs. SBM OFFSHORE | Thermo Fisher vs. CSSC Offshore Marine | Thermo Fisher vs. NH HOTEL GROUP |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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