Correlation Between INDUSTRIAL MEDICAL and TRANSCORP HOTELS
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By analyzing existing cross correlation between INDUSTRIAL MEDICAL GASES and TRANSCORP HOTELS PLC, you can compare the effects of market volatilities on INDUSTRIAL MEDICAL and TRANSCORP 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 INDUSTRIAL MEDICAL with a short position of TRANSCORP HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDUSTRIAL MEDICAL and TRANSCORP HOTELS.
Diversification Opportunities for INDUSTRIAL MEDICAL and TRANSCORP HOTELS
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between INDUSTRIAL and TRANSCORP is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding INDUSTRIAL MEDICAL GASES and TRANSCORP HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCORP HOTELS PLC and INDUSTRIAL MEDICAL 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 INDUSTRIAL MEDICAL GASES are associated (or correlated) with TRANSCORP HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCORP HOTELS PLC has no effect on the direction of INDUSTRIAL MEDICAL i.e., INDUSTRIAL MEDICAL and TRANSCORP HOTELS go up and down completely randomly.
Pair Corralation between INDUSTRIAL MEDICAL and TRANSCORP HOTELS
Assuming the 90 days trading horizon INDUSTRIAL MEDICAL GASES is expected to generate 0.01 times more return on investment than TRANSCORP HOTELS. However, INDUSTRIAL MEDICAL GASES is 108.49 times less risky than TRANSCORP HOTELS. It trades about 0.21 of its potential returns per unit of risk. TRANSCORP HOTELS PLC is currently generating about 0.0 per unit of risk. If you would invest 3,795 in INDUSTRIAL MEDICAL GASES on November 4, 2024 and sell it today you would earn a total of 5.00 from holding INDUSTRIAL MEDICAL GASES or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INDUSTRIAL MEDICAL GASES vs. TRANSCORP HOTELS PLC
Performance |
| Timeline |
| INDUSTRIAL MEDICAL GASES |
| TRANSCORP HOTELS PLC |
INDUSTRIAL MEDICAL and TRANSCORP HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDUSTRIAL MEDICAL and TRANSCORP HOTELS
The main advantage of trading using opposite INDUSTRIAL MEDICAL and TRANSCORP HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDUSTRIAL MEDICAL position performs unexpectedly, TRANSCORP 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 TRANSCORP HOTELS will offset losses from the drop in TRANSCORP HOTELS's long position.| INDUSTRIAL MEDICAL vs. UNION HOMES REAL | INDUSTRIAL MEDICAL vs. JAIZ BANK PLC | INDUSTRIAL MEDICAL vs. AFROMEDIA PLC | INDUSTRIAL MEDICAL vs. FIDSON HEALTHCARE PLC |
| TRANSCORP HOTELS vs. GUINEA INSURANCE PLC | TRANSCORP HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | TRANSCORP HOTELS vs. VFD GROUP | TRANSCORP HOTELS vs. IKEJA HOTELS PLC |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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