Correlation Between MIRAMAR HOTEL and BII Railway
Can any of the company-specific risk be diversified away by investing in both MIRAMAR HOTEL and BII Railway 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 BII Railway 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 BII Railway Transportation, you can compare the effects of market volatilities on MIRAMAR HOTEL and BII Railway 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 BII Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and BII Railway.
Diversification Opportunities for MIRAMAR HOTEL and BII Railway
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MIRAMAR and BII is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding MIRAMAR HOTEL INV and BII Railway Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BII Railway Transpor 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 BII Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BII Railway Transpor has no effect on the direction of MIRAMAR HOTEL i.e., MIRAMAR HOTEL and BII Railway go up and down completely randomly.
Pair Corralation between MIRAMAR HOTEL and BII Railway
Assuming the 90 days trading horizon MIRAMAR HOTEL INV is expected to generate 0.83 times more return on investment than BII Railway. However, MIRAMAR HOTEL INV is 1.21 times less risky than BII Railway. It trades about 0.09 of its potential returns per unit of risk. BII Railway Transportation is currently generating about 0.02 per unit of risk. If you would invest 88.00 in MIRAMAR HOTEL INV on October 18, 2024 and sell it today you would earn a total of 25.00 from holding MIRAMAR HOTEL INV or generate 28.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIRAMAR HOTEL INV vs. BII Railway Transportation
Performance |
| Timeline |
| MIRAMAR HOTEL INV |
| BII Railway Transpor |
MIRAMAR HOTEL and BII Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRAMAR HOTEL and BII Railway
The main advantage of trading using opposite MIRAMAR HOTEL and BII Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRAMAR HOTEL position performs unexpectedly, BII Railway 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 BII Railway will offset losses from the drop in BII Railway's long position.| MIRAMAR HOTEL vs. AEON METALS LTD | MIRAMAR HOTEL vs. PARKEN Sport Entertainment | MIRAMAR HOTEL vs. Comba Telecom Systems | MIRAMAR HOTEL vs. Transport International Holdings |
| BII Railway vs. MHP Hotel AG | BII Railway vs. Xenia Hotels Resorts | BII Railway vs. MIRAMAR HOTEL INV | BII Railway vs. NetSol Technologies |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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