Correlation Between AXAMANSARD INSURANCE and TRANSCORP HOTELS
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By analyzing existing cross correlation between AXAMANSARD INSURANCE PLC and TRANSCORP HOTELS PLC, you can compare the effects of market volatilities on AXAMANSARD INSURANCE and TRANSCORP HOTELS 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 AXAMANSARD INSURANCE with a short position of TRANSCORP HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and TRANSCORP HOTELS.
Diversification Opportunities for AXAMANSARD INSURANCE and TRANSCORP HOTELS
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AXAMANSARD and TRANSCORP is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and TRANSCORP HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCORP HOTELS PLC and AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE PLC are associated (or correlated) with TRANSCORP HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCORP HOTELS PLC has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and TRANSCORP HOTELS go up and down completely randomly.
Pair Corralation between AXAMANSARD INSURANCE and TRANSCORP HOTELS
Assuming the 90 days trading horizon AXAMANSARD INSURANCE is expected to generate 1.41 times less return on investment than TRANSCORP HOTELS. In addition to that, AXAMANSARD INSURANCE is 1.72 times more volatile than TRANSCORP HOTELS PLC. It trades about 0.09 of its total potential returns per unit of risk. TRANSCORP HOTELS PLC is currently generating about 0.23 per unit of volatility. If you would invest 11,600 in TRANSCORP HOTELS PLC on October 25, 2024 and sell it today you would earn a total of 1,135 from holding TRANSCORP HOTELS PLC or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXAMANSARD INSURANCE PLC vs. TRANSCORP HOTELS PLC
Performance |
| Timeline |
| AXAMANSARD INSURANCE PLC |
| TRANSCORP HOTELS PLC |
AXAMANSARD INSURANCE and TRANSCORP HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXAMANSARD INSURANCE and TRANSCORP HOTELS
The main advantage of trading using opposite AXAMANSARD INSURANCE and TRANSCORP HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE position performs unexpectedly, TRANSCORP HOTELS 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 TRANSCORP HOTELS will offset losses from the drop in TRANSCORP HOTELS's long position.| AXAMANSARD INSURANCE vs. GUINEA INSURANCE PLC | AXAMANSARD INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | AXAMANSARD INSURANCE vs. VETIVA BANKING ETF | AXAMANSARD INSURANCE vs. BUA FOODS PLC |
| TRANSCORP HOTELS vs. GUINEA INSURANCE PLC | TRANSCORP HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | TRANSCORP HOTELS vs. VETIVA BANKING ETF | TRANSCORP HOTELS vs. BUA FOODS PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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