Correlation Between Melia Hotels and Zambal Spain
Can any of the company-specific risk be diversified away by investing in both Melia Hotels and Zambal Spain 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 Melia Hotels and Zambal Spain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melia Hotels and Zambal Spain Socimi, you can compare the effects of market volatilities on Melia Hotels and Zambal Spain 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 Melia Hotels with a short position of Zambal Spain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melia Hotels and Zambal Spain.
Diversification Opportunities for Melia Hotels and Zambal Spain
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Melia and Zambal is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Melia Hotels and Zambal Spain Socimi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zambal Spain Socimi and Melia 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 Melia Hotels are associated (or correlated) with Zambal Spain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zambal Spain Socimi has no effect on the direction of Melia Hotels i.e., Melia Hotels and Zambal Spain go up and down completely randomly.
Pair Corralation between Melia Hotels and Zambal Spain
Assuming the 90 days trading horizon Melia Hotels is expected to generate 1.17 times more return on investment than Zambal Spain. However, Melia Hotels is 1.17 times more volatile than Zambal Spain Socimi. It trades about 0.04 of its potential returns per unit of risk. Zambal Spain Socimi is currently generating about -0.02 per unit of risk. If you would invest 498.00 in Melia Hotels on September 3, 2024 and sell it today you would earn a total of 179.00 from holding Melia Hotels or generate 35.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Melia Hotels vs. Zambal Spain Socimi
Performance |
| Timeline |
| Melia Hotels |
| Zambal Spain Socimi |
Melia Hotels and Zambal Spain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melia Hotels and Zambal Spain
The main advantage of trading using opposite Melia Hotels and Zambal Spain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melia Hotels position performs unexpectedly, Zambal Spain 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 Zambal Spain will offset losses from the drop in Zambal Spain's long position.| Melia Hotels vs. Aedas Homes SL | Melia Hotels vs. Metrovacesa SA | Melia Hotels vs. Merlin Properties SOCIMI | Melia Hotels vs. Lar Espana Real |
| Zambal Spain vs. Labiana Health SA | Zambal Spain vs. Atresmedia Corporacin de | Zambal Spain vs. Energy Solar Tech | Zambal Spain vs. Neinor Homes SLU |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |