Correlation Between Hotel Majestic and Acticor Biotech
Can any of the company-specific risk be diversified away by investing in both Hotel Majestic and Acticor Biotech 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 Hotel Majestic and Acticor Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Majestic Cannes and Acticor Biotech SAS, you can compare the effects of market volatilities on Hotel Majestic and Acticor Biotech 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 Hotel Majestic with a short position of Acticor Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Majestic and Acticor Biotech.
Diversification Opportunities for Hotel Majestic and Acticor Biotech
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hotel and Acticor is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Majestic Cannes and Acticor Biotech SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acticor Biotech SAS and Hotel Majestic 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 Hotel Majestic Cannes are associated (or correlated) with Acticor Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acticor Biotech SAS has no effect on the direction of Hotel Majestic i.e., Hotel Majestic and Acticor Biotech go up and down completely randomly.
Pair Corralation between Hotel Majestic and Acticor Biotech
If you would invest 500,000 in Hotel Majestic Cannes on November 3, 2024 and sell it today you would earn a total of 20,000 from holding Hotel Majestic Cannes or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hotel Majestic Cannes vs. Acticor Biotech SAS
Performance |
| Timeline |
| Hotel Majestic Cannes |
| Acticor Biotech SAS |
Hotel Majestic and Acticor Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Majestic and Acticor Biotech
The main advantage of trading using opposite Hotel Majestic and Acticor Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Majestic position performs unexpectedly, Acticor Biotech 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 Acticor Biotech will offset losses from the drop in Acticor Biotech's long position.| Hotel Majestic vs. Bilendi | Hotel Majestic vs. Marie Brizard Wine | Hotel Majestic vs. STMicroelectronics NV | Hotel Majestic vs. Innelec Multimedia |
| Acticor Biotech vs. Lexibook Linguistic Electronic | Acticor Biotech vs. Eutelsat Communications SA | Acticor Biotech vs. X Fab Silicon | Acticor Biotech vs. Metalliance SA |
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
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |