Correlation Between Hotel Majestic and EureKING
Can any of the company-specific risk be diversified away by investing in both Hotel Majestic and EureKING 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 EureKING 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 EureKING SA, you can compare the effects of market volatilities on Hotel Majestic and EureKING 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 EureKING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Majestic and EureKING.
Diversification Opportunities for Hotel Majestic and EureKING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hotel and EureKING is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Majestic Cannes and EureKING SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EureKING SA 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 EureKING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EureKING SA has no effect on the direction of Hotel Majestic i.e., Hotel Majestic and EureKING go up and down completely randomly.
Pair Corralation between Hotel Majestic and EureKING
If you would invest 520,000 in Hotel Majestic Cannes on October 28, 2024 and sell it today you would earn a total of 30,000 from holding Hotel Majestic Cannes or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hotel Majestic Cannes vs. EureKING SA
Performance |
| Timeline |
| Hotel Majestic Cannes |
| EureKING SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hotel Majestic and EureKING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Majestic and EureKING
The main advantage of trading using opposite Hotel Majestic and EureKING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Majestic position performs unexpectedly, EureKING 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 EureKING will offset losses from the drop in EureKING's long position.| Hotel Majestic vs. Accor S A | Hotel Majestic vs. Pierre et Vacances | Hotel Majestic vs. Ferm Casino Mun | Hotel Majestic vs. Les Hotels Bav |
| EureKING vs. Jacquet Metal Service | EureKING vs. Odyssee Technologies SA | EureKING vs. Netmedia Group SA | EureKING vs. Technip Energies BV |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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