Correlation Between KENEDIX OFFICE and InterContinental
Can any of the company-specific risk be diversified away by investing in both KENEDIX OFFICE and InterContinental 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 KENEDIX OFFICE and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KENEDIX OFFICE INV and InterContinental Hotels Group, you can compare the effects of market volatilities on KENEDIX OFFICE and InterContinental 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 KENEDIX OFFICE with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of KENEDIX OFFICE and InterContinental.
Diversification Opportunities for KENEDIX OFFICE and InterContinental
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KENEDIX and InterContinental is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding KENEDIX OFFICE INV and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and KENEDIX OFFICE 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 KENEDIX OFFICE INV are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of KENEDIX OFFICE i.e., KENEDIX OFFICE and InterContinental go up and down completely randomly.
Pair Corralation between KENEDIX OFFICE and InterContinental
Assuming the 90 days horizon KENEDIX OFFICE is expected to generate 46.6 times less return on investment than InterContinental. But when comparing it to its historical volatility, KENEDIX OFFICE INV is 1.06 times less risky than InterContinental. It trades about 0.01 of its potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 10,100 in InterContinental Hotels Group on August 25, 2024 and sell it today you would earn a total of 1,400 from holding InterContinental Hotels Group or generate 13.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KENEDIX OFFICE INV vs. InterContinental Hotels Group
Performance |
| Timeline |
| KENEDIX OFFICE INV |
| InterContinental Hotels |
KENEDIX OFFICE and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KENEDIX OFFICE and InterContinental
The main advantage of trading using opposite KENEDIX OFFICE and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KENEDIX OFFICE position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| KENEDIX OFFICE vs. Xenia Hotels Resorts | KENEDIX OFFICE vs. AEGEAN AIRLINES | KENEDIX OFFICE vs. MIRAMAR HOTEL INV | KENEDIX OFFICE vs. MHP Hotel AG |
| InterContinental vs. COSMOSTEEL HLDGS | InterContinental vs. Fukuyama Transporting Co | InterContinental vs. Big 5 Sporting | InterContinental vs. Transportadora de Gas |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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