Correlation Between Peak Resources and MIRAMAR HOTEL
Can any of the company-specific risk be diversified away by investing in both Peak Resources and MIRAMAR 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 Peak Resources and MIRAMAR HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peak Resources Limited and MIRAMAR HOTEL INV, you can compare the effects of market volatilities on Peak Resources and MIRAMAR 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 Peak Resources with a short position of MIRAMAR HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peak Resources and MIRAMAR HOTEL.
Diversification Opportunities for Peak Resources and MIRAMAR HOTEL
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Peak and MIRAMAR is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Peak Resources Limited and MIRAMAR HOTEL INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIRAMAR HOTEL INV and Peak Resources 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 Peak Resources Limited are associated (or correlated) with MIRAMAR HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIRAMAR HOTEL INV has no effect on the direction of Peak Resources i.e., Peak Resources and MIRAMAR HOTEL go up and down completely randomly.
Pair Corralation between Peak Resources and MIRAMAR HOTEL
Assuming the 90 days horizon Peak Resources Limited is expected to under-perform the MIRAMAR HOTEL. In addition to that, Peak Resources is 2.92 times more volatile than MIRAMAR HOTEL INV. It trades about -0.01 of its total potential returns per unit of risk. MIRAMAR HOTEL INV is currently generating about 0.08 per unit of volatility. If you would invest 70.00 in MIRAMAR HOTEL INV on September 4, 2024 and sell it today you would earn a total of 42.00 from holding MIRAMAR HOTEL INV or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Peak Resources Limited vs. MIRAMAR HOTEL INV
Performance |
| Timeline |
| Peak Resources |
| MIRAMAR HOTEL INV |
Peak Resources and MIRAMAR HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peak Resources and MIRAMAR HOTEL
The main advantage of trading using opposite Peak Resources and MIRAMAR HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peak Resources position performs unexpectedly, MIRAMAR 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 MIRAMAR HOTEL will offset losses from the drop in MIRAMAR HOTEL's long position.| Peak Resources vs. BHP Group Limited | Peak Resources vs. Rio Tinto Group | Peak Resources vs. Vale SA | Peak Resources vs. Glencore plc |
| MIRAMAR HOTEL vs. TOTAL GABON | MIRAMAR HOTEL vs. Walgreens Boots Alliance | MIRAMAR HOTEL vs. Peak Resources Limited |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |