Correlation Between Intergroup and Howard Hughes
Can any of the company-specific risk be diversified away by investing in both Intergroup and Howard Hughes 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 Intergroup and Howard Hughes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Intergroup and Howard Hughes, you can compare the effects of market volatilities on Intergroup and Howard Hughes 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 Intergroup with a short position of Howard Hughes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intergroup and Howard Hughes.
Diversification Opportunities for Intergroup and Howard Hughes
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intergroup and Howard is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Intergroup and Howard Hughes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Howard Hughes and Intergroup 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 The Intergroup are associated (or correlated) with Howard Hughes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Howard Hughes has no effect on the direction of Intergroup i.e., Intergroup and Howard Hughes go up and down completely randomly.
Pair Corralation between Intergroup and Howard Hughes
Given the investment horizon of 90 days The Intergroup is expected to under-perform the Howard Hughes. In addition to that, Intergroup is 2.28 times more volatile than Howard Hughes. It trades about -0.05 of its total potential returns per unit of risk. Howard Hughes is currently generating about 0.03 per unit of volatility. If you would invest 7,341 in Howard Hughes on August 27, 2024 and sell it today you would earn a total of 1,046 from holding Howard Hughes or generate 14.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.1% |
| Values | Daily Returns |
The Intergroup vs. Howard Hughes
Performance |
| Timeline |
| Intergroup |
| Howard Hughes |
Intergroup and Howard Hughes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intergroup and Howard Hughes
The main advantage of trading using opposite Intergroup and Howard Hughes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intergroup position performs unexpectedly, Howard Hughes 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 Howard Hughes will offset losses from the drop in Howard Hughes' long position.| Intergroup vs. Huazhu Group | Intergroup vs. Atour Lifestyle Holdings | Intergroup vs. LuxUrban Hotels | Intergroup vs. InterContinental Hotels Group |
| Howard Hughes vs. MDJM | Howard Hughes vs. New Concept Energy | Howard Hughes vs. Fangdd Network Group | Howard Hughes vs. Avalon GloboCare Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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