Correlation Between Hotel Majestic and Cibox Interctive
Can any of the company-specific risk be diversified away by investing in both Hotel Majestic and Cibox Interctive 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 Cibox Interctive 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 Cibox Interctive SA, you can compare the effects of market volatilities on Hotel Majestic and Cibox Interctive 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 Cibox Interctive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Majestic and Cibox Interctive.
Diversification Opportunities for Hotel Majestic and Cibox Interctive
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hotel and Cibox is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Majestic Cannes and Cibox Interctive SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibox Interctive 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 Cibox Interctive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibox Interctive has no effect on the direction of Hotel Majestic i.e., Hotel Majestic and Cibox Interctive go up and down completely randomly.
Pair Corralation between Hotel Majestic and Cibox Interctive
If you would invest 520,000 in Hotel Majestic Cannes on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Hotel Majestic Cannes or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hotel Majestic Cannes vs. Cibox Interctive SA
Performance |
| Timeline |
| Hotel Majestic Cannes |
| Cibox Interctive |
Hotel Majestic and Cibox Interctive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Majestic and Cibox Interctive
The main advantage of trading using opposite Hotel Majestic and Cibox Interctive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Majestic position performs unexpectedly, Cibox Interctive 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 Cibox Interctive will offset losses from the drop in Cibox Interctive's long position.The idea behind Hotel Majestic Cannes and Cibox Interctive SA 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.| Cibox Interctive vs. Hitechpros | Cibox Interctive vs. Metalliance SA | Cibox Interctive vs. Jacquet Metal Service | Cibox Interctive vs. Impulse Fitness Solutions |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |