Correlation Between Man Infraconstructio and Byke Hospitality

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Can any of the company-specific risk be diversified away by investing in both Man Infraconstructio and Byke Hospitality 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 Man Infraconstructio and Byke Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Man Infraconstruction Limited and The Byke Hospitality, you can compare the effects of market volatilities on Man Infraconstructio and Byke Hospitality 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 Man Infraconstructio with a short position of Byke Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Man Infraconstructio and Byke Hospitality.

Diversification Opportunities for Man Infraconstructio and Byke Hospitality

ManBykeDiversified AwayManBykeDiversified Away100%
0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Man and Byke is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Man Infraconstruction Limited and The Byke Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byke Hospitality and Man Infraconstructio 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 Man Infraconstruction Limited are associated (or correlated) with Byke Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byke Hospitality has no effect on the direction of Man Infraconstructio i.e., Man Infraconstructio and Byke Hospitality go up and down completely randomly.

Pair Corralation between Man Infraconstructio and Byke Hospitality

Assuming the 90 days trading horizon Man Infraconstruction Limited is expected to under-perform the Byke Hospitality. In addition to that, Man Infraconstructio is 1.17 times more volatile than The Byke Hospitality. It trades about -0.24 of its total potential returns per unit of risk. The Byke Hospitality is currently generating about -0.26 per unit of volatility. If you would invest  8,018  in The Byke Hospitality on November 26, 2024 and sell it today you would lose (980.00) from holding The Byke Hospitality or give up 12.22% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Man Infraconstruction Limited  vs.  The Byke Hospitality

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 010203040
JavaScript chart by amCharts 3.21.15MANINFRA BYKE
       Timeline  
Man Infraconstruction 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Man Infraconstruction Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb160180200220240260
Byke Hospitality 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Over the last 90 days The Byke Hospitality has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Byke Hospitality is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb65707580859095100105

Man Infraconstructio and Byke Hospitality Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.04-3.78-2.51-1.25-0.02061.22.443.674.916.15 0.0350.0400.0450.050
JavaScript chart by amCharts 3.21.15MANINFRA BYKE
       Returns  

Pair Trading with Man Infraconstructio and Byke Hospitality

The main advantage of trading using opposite Man Infraconstructio and Byke Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Man Infraconstructio position performs unexpectedly, Byke Hospitality 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 Byke Hospitality will offset losses from the drop in Byke Hospitality's long position.
The idea behind Man Infraconstruction Limited and The Byke Hospitality pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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