Correlation Between Internet Thailand and COVIVIO HOTELS
Can any of the company-specific risk be diversified away by investing in both Internet Thailand and COVIVIO HOTELS 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 Internet Thailand and COVIVIO HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Internet Thailand PCL and COVIVIO HOTELS INH, you can compare the effects of market volatilities on Internet Thailand and COVIVIO HOTELS 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 Internet Thailand with a short position of COVIVIO HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Internet Thailand and COVIVIO HOTELS.
Diversification Opportunities for Internet Thailand and COVIVIO HOTELS
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Internet and COVIVIO is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Internet Thailand PCL and COVIVIO HOTELS INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COVIVIO HOTELS INH and Internet Thailand 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 Internet Thailand PCL are associated (or correlated) with COVIVIO HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COVIVIO HOTELS INH has no effect on the direction of Internet Thailand i.e., Internet Thailand and COVIVIO HOTELS go up and down completely randomly.
Pair Corralation between Internet Thailand and COVIVIO HOTELS
Assuming the 90 days trading horizon Internet Thailand PCL is expected to under-perform the COVIVIO HOTELS. In addition to that, Internet Thailand is 3.2 times more volatile than COVIVIO HOTELS INH. It trades about -0.03 of its total potential returns per unit of risk. COVIVIO HOTELS INH is currently generating about 0.39 per unit of volatility. If you would invest 1,885 in COVIVIO HOTELS INH on November 28, 2024 and sell it today you would earn a total of 255.00 from holding COVIVIO HOTELS INH or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Internet Thailand PCL vs. COVIVIO HOTELS INH
Performance |
| Timeline |
| Internet Thailand PCL |
| COVIVIO HOTELS INH |
Internet Thailand and COVIVIO HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Internet Thailand and COVIVIO HOTELS
The main advantage of trading using opposite Internet Thailand and COVIVIO HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Internet Thailand position performs unexpectedly, COVIVIO HOTELS 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 COVIVIO HOTELS will offset losses from the drop in COVIVIO HOTELS's long position.| Internet Thailand vs. Choice Hotels International | Internet Thailand vs. Summit Hotel Properties | Internet Thailand vs. Wyndham Hotels Resorts | Internet Thailand vs. NH HOTEL GROUP |
| COVIVIO HOTELS vs. Platinum Investment Management | COVIVIO HOTELS vs. Gruppo Mutuionline SpA | COVIVIO HOTELS vs. Q2M Managementberatung AG | COVIVIO HOTELS vs. AGF Management 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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