Correlation Between Onlineformapro and Covivio Hotels
Can any of the company-specific risk be diversified away by investing in both Onlineformapro and Covivio Hotels 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 Onlineformapro and Covivio Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onlineformapro SA and Covivio Hotels, you can compare the effects of market volatilities on Onlineformapro and Covivio Hotels 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 Onlineformapro with a short position of Covivio Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onlineformapro and Covivio Hotels.
Diversification Opportunities for Onlineformapro and Covivio Hotels
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Onlineformapro and Covivio is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Onlineformapro SA and Covivio Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Covivio Hotels and Onlineformapro 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 Onlineformapro SA are associated (or correlated) with Covivio Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Covivio Hotels has no effect on the direction of Onlineformapro i.e., Onlineformapro and Covivio Hotels go up and down completely randomly.
Pair Corralation between Onlineformapro and Covivio Hotels
Assuming the 90 days trading horizon Onlineformapro SA is expected to generate 15.83 times more return on investment than Covivio Hotels. However, Onlineformapro is 15.83 times more volatile than Covivio Hotels. It trades about 0.02 of its potential returns per unit of risk. Covivio Hotels is currently generating about -0.12 per unit of risk. If you would invest 242.00 in Onlineformapro SA on September 1, 2024 and sell it today you would lose (2.00) from holding Onlineformapro SA or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onlineformapro SA vs. Covivio Hotels
Performance |
| Timeline |
| Onlineformapro SA |
| Covivio Hotels |
Onlineformapro and Covivio Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onlineformapro and Covivio Hotels
The main advantage of trading using opposite Onlineformapro and Covivio Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onlineformapro position performs unexpectedly, Covivio Hotels 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 Covivio Hotels will offset losses from the drop in Covivio Hotels' long position.| Onlineformapro vs. Txcom SA | Onlineformapro vs. Poujoulat SA | Onlineformapro vs. Vente Unique | Onlineformapro vs. Moulinvest |
| Covivio Hotels vs. Covivio SA | Covivio Hotels vs. Altarea SCA | Covivio Hotels vs. Carmila SA | Covivio Hotels vs. Icade 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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