Correlation Between MIRAMAR HOTEL and ArcelorMittal
Can any of the company-specific risk be diversified away by investing in both MIRAMAR HOTEL and ArcelorMittal 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 MIRAMAR HOTEL and ArcelorMittal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MIRAMAR HOTEL INV and ArcelorMittal, you can compare the effects of market volatilities on MIRAMAR HOTEL and ArcelorMittal 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 MIRAMAR HOTEL with a short position of ArcelorMittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and ArcelorMittal.
Diversification Opportunities for MIRAMAR HOTEL and ArcelorMittal
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between MIRAMAR and ArcelorMittal is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding MIRAMAR HOTEL INV and ArcelorMittal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal and MIRAMAR HOTEL 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 MIRAMAR HOTEL INV are associated (or correlated) with ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal has no effect on the direction of MIRAMAR HOTEL i.e., MIRAMAR HOTEL and ArcelorMittal go up and down completely randomly.
Pair Corralation between MIRAMAR HOTEL and ArcelorMittal
Assuming the 90 days trading horizon MIRAMAR HOTEL INV is expected to generate 1.16 times more return on investment than ArcelorMittal. However, MIRAMAR HOTEL is 1.16 times more volatile than ArcelorMittal. It trades about 0.07 of its potential returns per unit of risk. ArcelorMittal is currently generating about 0.01 per unit of risk. If you would invest 49.00 in MIRAMAR HOTEL INV on January 23, 2025 and sell it today you would earn a total of 51.00 from holding MIRAMAR HOTEL INV or generate 104.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIRAMAR HOTEL INV vs. ArcelorMittal
Performance |
| Timeline |
| MIRAMAR HOTEL INV |
| ArcelorMittal |
MIRAMAR HOTEL and ArcelorMittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRAMAR HOTEL and ArcelorMittal
The main advantage of trading using opposite MIRAMAR HOTEL and ArcelorMittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRAMAR HOTEL position performs unexpectedly, ArcelorMittal 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 ArcelorMittal will offset losses from the drop in ArcelorMittal's long position.| MIRAMAR HOTEL vs. Hyrican Informationssysteme Aktiengesellschaft | MIRAMAR HOTEL vs. MAGNUM MINING EXP | MIRAMAR HOTEL vs. Calibre Mining Corp | MIRAMAR HOTEL vs. Stewart Information Services |
| ArcelorMittal vs. TCL MULTIMEDIA TECH | ArcelorMittal vs. REMEDY ENTERTAINMENT OYJ | ArcelorMittal vs. Tyson Foods | ArcelorMittal vs. AcadeMedia AB |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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