Correlation Between Meli Hotels and Panoramic Resources
Can any of the company-specific risk be diversified away by investing in both Meli Hotels and Panoramic Resources 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 Meli Hotels and Panoramic Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meli Hotels International and Panoramic Resources Limited, you can compare the effects of market volatilities on Meli Hotels and Panoramic Resources 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 Meli Hotels with a short position of Panoramic Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meli Hotels and Panoramic Resources.
Diversification Opportunities for Meli Hotels and Panoramic Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Meli and Panoramic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Meli Hotels International and Panoramic Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panoramic Resources and Meli Hotels 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 Meli Hotels International are associated (or correlated) with Panoramic Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panoramic Resources has no effect on the direction of Meli Hotels i.e., Meli Hotels and Panoramic Resources go up and down completely randomly.
Pair Corralation between Meli Hotels and Panoramic Resources
Assuming the 90 days horizon Meli Hotels International is expected to generate 0.55 times more return on investment than Panoramic Resources. However, Meli Hotels International is 1.81 times less risky than Panoramic Resources. It trades about 0.03 of its potential returns per unit of risk. Panoramic Resources Limited is currently generating about -0.07 per unit of risk. If you would invest 635.00 in Meli Hotels International on September 12, 2024 and sell it today you would earn a total of 77.00 from holding Meli Hotels International or generate 12.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meli Hotels International vs. Panoramic Resources Limited
Performance |
| Timeline |
| Meli Hotels International |
| Panoramic Resources |
Meli Hotels and Panoramic Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meli Hotels and Panoramic Resources
The main advantage of trading using opposite Meli Hotels and Panoramic Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meli Hotels position performs unexpectedly, Panoramic Resources 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 Panoramic Resources will offset losses from the drop in Panoramic Resources' long position.| Meli Hotels vs. Hyatt Hotels | Meli Hotels vs. InterContinental Hotels Group | Meli Hotels vs. INTERCONT HOTELS | Meli Hotels vs. Wyndham Hotels Resorts |
| Panoramic Resources vs. Vulcan Materials | Panoramic Resources vs. Gold Road Resources | Panoramic Resources vs. Transport International Holdings | Panoramic Resources vs. BII Railway Transportation |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |