Correlation Between Hotel Majestic and Exail Technologies
Can any of the company-specific risk be diversified away by investing in both Hotel Majestic and Exail Technologies 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 Exail Technologies 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 Exail Technologies SA, you can compare the effects of market volatilities on Hotel Majestic and Exail Technologies 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 Exail Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Majestic and Exail Technologies.
Diversification Opportunities for Hotel Majestic and Exail Technologies
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hotel and Exail is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Majestic Cannes and Exail Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exail Technologies 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 Exail Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exail Technologies has no effect on the direction of Hotel Majestic i.e., Hotel Majestic and Exail Technologies go up and down completely randomly.
Pair Corralation between Hotel Majestic and Exail Technologies
Assuming the 90 days trading horizon Hotel Majestic Cannes is expected to generate 1.01 times more return on investment than Exail Technologies. However, Hotel Majestic is 1.01 times more volatile than Exail Technologies SA. It trades about 0.04 of its potential returns per unit of risk. Exail Technologies SA is currently generating about -0.03 per unit of risk. If you would invest 462,000 in Hotel Majestic Cannes on September 1, 2024 and sell it today you would earn a total of 58,000 from holding Hotel Majestic Cannes or generate 12.55% 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. Exail Technologies SA
Performance |
| Timeline |
| Hotel Majestic Cannes |
| Exail Technologies |
Hotel Majestic and Exail Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Majestic and Exail Technologies
The main advantage of trading using opposite Hotel Majestic and Exail Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Majestic position performs unexpectedly, Exail Technologies 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 Exail Technologies will offset losses from the drop in Exail Technologies' long position.| Hotel Majestic vs. Eutelsat Communications SA | Hotel Majestic vs. Novatech Industries SA | Hotel Majestic vs. Axway Software | Hotel Majestic vs. Mauna Kea Technologies |
| Exail Technologies vs. ISPD Network SA | Exail Technologies vs. Gaztransport Technigaz SAS | Exail Technologies vs. Covivio Hotels | Exail Technologies vs. Fill Up Media |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |