Correlation Between Transport International and PPHE HOTEL
Can any of the company-specific risk be diversified away by investing in both Transport International and PPHE HOTEL 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 Transport International and PPHE HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transport International Holdings and PPHE HOTEL GROUP, you can compare the effects of market volatilities on Transport International and PPHE HOTEL 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 Transport International with a short position of PPHE HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transport International and PPHE HOTEL.
Diversification Opportunities for Transport International and PPHE HOTEL
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Transport and PPHE is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Transport International Holdin and PPHE HOTEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPHE HOTEL GROUP and Transport International 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 Transport International Holdings are associated (or correlated) with PPHE HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPHE HOTEL GROUP has no effect on the direction of Transport International i.e., Transport International and PPHE HOTEL go up and down completely randomly.
Pair Corralation between Transport International and PPHE HOTEL
Assuming the 90 days horizon Transport International Holdings is expected to generate 2.14 times more return on investment than PPHE HOTEL. However, Transport International is 2.14 times more volatile than PPHE HOTEL GROUP. It trades about 0.05 of its potential returns per unit of risk. PPHE HOTEL GROUP is currently generating about -0.13 per unit of risk. If you would invest 94.00 in Transport International Holdings on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Transport International Holdings or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transport International Holdin vs. PPHE HOTEL GROUP
Performance |
| Timeline |
| Transport International |
| PPHE HOTEL GROUP |
Transport International and PPHE HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transport International and PPHE HOTEL
The main advantage of trading using opposite Transport International and PPHE HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transport International position performs unexpectedly, PPHE HOTEL 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 PPHE HOTEL will offset losses from the drop in PPHE HOTEL's long position.| Transport International vs. Union Pacific | Transport International vs. Superior Plus Corp | Transport International vs. NMI Holdings | Transport International vs. Origin Agritech |
| PPHE HOTEL vs. URBAN OUTFITTERS | PPHE HOTEL vs. ARDAGH METAL PACDL 0001 | PPHE HOTEL vs. National Beverage Corp | PPHE HOTEL vs. G III Apparel Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |