Correlation Between Ieh Corp and Meritage Hospitality
Can any of the company-specific risk be diversified away by investing in both Ieh Corp and Meritage Hospitality 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 Ieh Corp and Meritage Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ieh Corp and Meritage Hospitality Group, you can compare the effects of market volatilities on Ieh Corp and Meritage Hospitality 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 Ieh Corp with a short position of Meritage Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ieh Corp and Meritage Hospitality.
Diversification Opportunities for Ieh Corp and Meritage Hospitality
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ieh and Meritage is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ieh Corp and Meritage Hospitality Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meritage Hospitality and Ieh Corp 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 Ieh Corp are associated (or correlated) with Meritage Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meritage Hospitality has no effect on the direction of Ieh Corp i.e., Ieh Corp and Meritage Hospitality go up and down completely randomly.
Pair Corralation between Ieh Corp and Meritage Hospitality
If you would invest 750.00 in Ieh Corp on August 28, 2024 and sell it today you would earn a total of 150.00 from holding Ieh Corp or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Ieh Corp vs. Meritage Hospitality Group
Performance |
| Timeline |
| Ieh Corp |
| Meritage Hospitality |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ieh Corp and Meritage Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ieh Corp and Meritage Hospitality
The main advantage of trading using opposite Ieh Corp and Meritage Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ieh Corp position performs unexpectedly, Meritage Hospitality 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 Meritage Hospitality will offset losses from the drop in Meritage Hospitality's long position.| Ieh Corp vs. LGL Group | Ieh Corp vs. Deswell Industries | Ieh Corp vs. M tron Industries | Ieh Corp vs. Micropac Industries |
| Meritage Hospitality vs. Ieh Corp | Meritage Hospitality vs. Noble Romans | Meritage Hospitality vs. Flanigans Enterprises |
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 Stocks Directory module to find actively traded stocks across global markets.
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