Correlation Between InnSuites Hospitality and Regional Health
Can any of the company-specific risk be diversified away by investing in both InnSuites Hospitality and Regional Health 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 InnSuites Hospitality and Regional Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InnSuites Hospitality Trust and Regional Health Properties, you can compare the effects of market volatilities on InnSuites Hospitality and Regional Health 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 InnSuites Hospitality with a short position of Regional Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of InnSuites Hospitality and Regional Health.
Diversification Opportunities for InnSuites Hospitality and Regional Health
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between InnSuites and Regional is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding InnSuites Hospitality Trust and Regional Health Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Health Prop and InnSuites Hospitality 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 InnSuites Hospitality Trust are associated (or correlated) with Regional Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Health Prop has no effect on the direction of InnSuites Hospitality i.e., InnSuites Hospitality and Regional Health go up and down completely randomly.
Pair Corralation between InnSuites Hospitality and Regional Health
Considering the 90-day investment horizon InnSuites Hospitality Trust is expected to generate 0.34 times more return on investment than Regional Health. However, InnSuites Hospitality Trust is 2.93 times less risky than Regional Health. It trades about 0.26 of its potential returns per unit of risk. Regional Health Properties is currently generating about -0.03 per unit of risk. If you would invest 189.00 in InnSuites Hospitality Trust on August 28, 2024 and sell it today you would earn a total of 28.00 from holding InnSuites Hospitality Trust or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InnSuites Hospitality Trust vs. Regional Health Properties
Performance |
| Timeline |
| InnSuites Hospitality |
| Regional Health Prop |
InnSuites Hospitality and Regional Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InnSuites Hospitality and Regional Health
The main advantage of trading using opposite InnSuites Hospitality and Regional Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InnSuites Hospitality position performs unexpectedly, Regional Health 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 Regional Health will offset losses from the drop in Regional Health's long position.| InnSuites Hospitality vs. Regional Health Properties | InnSuites Hospitality vs. SemiLEDS | InnSuites Hospitality vs. SunLink Health Systems | InnSuites Hospitality vs. Avalon Holdings |
| Regional Health vs. Ramsay Health Care | Regional Health vs. Jack Nathan Medical | Regional Health vs. Nova Leap Health | Regional Health vs. Fresenius SE Co |
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.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |