Correlation Between MIRAMAR HOTEL and CANON MARKETING
Can any of the company-specific risk be diversified away by investing in both MIRAMAR HOTEL and CANON MARKETING 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 CANON MARKETING 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 CANON MARKETING JP, you can compare the effects of market volatilities on MIRAMAR HOTEL and CANON MARKETING 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 CANON MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and CANON MARKETING.
Diversification Opportunities for MIRAMAR HOTEL and CANON MARKETING
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between MIRAMAR and CANON is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding MIRAMAR HOTEL INV and CANON MARKETING JP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CANON MARKETING JP 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 CANON MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CANON MARKETING JP has no effect on the direction of MIRAMAR HOTEL i.e., MIRAMAR HOTEL and CANON MARKETING go up and down completely randomly.
Pair Corralation between MIRAMAR HOTEL and CANON MARKETING
Assuming the 90 days trading horizon MIRAMAR HOTEL is expected to generate 11.91 times less return on investment than CANON MARKETING. But when comparing it to its historical volatility, MIRAMAR HOTEL INV is 1.96 times less risky than CANON MARKETING. It trades about 0.07 of its potential returns per unit of risk. CANON MARKETING JP is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 2,620 in CANON MARKETING JP on August 25, 2024 and sell it today you would earn a total of 300.00 from holding CANON MARKETING JP or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIRAMAR HOTEL INV vs. CANON MARKETING JP
Performance |
| Timeline |
| MIRAMAR HOTEL INV |
| CANON MARKETING JP |
MIRAMAR HOTEL and CANON MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRAMAR HOTEL and CANON MARKETING
The main advantage of trading using opposite MIRAMAR HOTEL and CANON MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRAMAR HOTEL position performs unexpectedly, CANON MARKETING 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 CANON MARKETING will offset losses from the drop in CANON MARKETING's long position.| MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Apple Inc |
| CANON MARKETING vs. PLAYTIKA HOLDING DL 01 | CANON MARKETING vs. JD SPORTS FASH | CANON MARKETING vs. COSTCO WHOLESALE CDR | CANON MARKETING vs. VIAPLAY GROUP 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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