Correlation Between MIRAMAR HOTEL and COMBA TELECOM
Can any of the company-specific risk be diversified away by investing in both MIRAMAR HOTEL and COMBA TELECOM 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 COMBA TELECOM 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 COMBA TELECOM SYST, you can compare the effects of market volatilities on MIRAMAR HOTEL and COMBA TELECOM 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 COMBA TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and COMBA TELECOM.
Diversification Opportunities for MIRAMAR HOTEL and COMBA TELECOM
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between MIRAMAR and COMBA is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding MIRAMAR HOTEL INV and COMBA TELECOM SYST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMBA TELECOM SYST 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 COMBA TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMBA TELECOM SYST has no effect on the direction of MIRAMAR HOTEL i.e., MIRAMAR HOTEL and COMBA TELECOM go up and down completely randomly.
Pair Corralation between MIRAMAR HOTEL and COMBA TELECOM
Assuming the 90 days trading horizon MIRAMAR HOTEL INV is expected to generate 1.26 times more return on investment than COMBA TELECOM. However, MIRAMAR HOTEL is 1.26 times more volatile than COMBA TELECOM SYST. It trades about 0.07 of its potential returns per unit of risk. COMBA TELECOM SYST is currently generating about 0.03 per unit of risk. If you would invest 72.00 in MIRAMAR HOTEL INV on September 2, 2024 and sell it today you would earn a total of 40.00 from holding MIRAMAR HOTEL INV or generate 55.56% 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. COMBA TELECOM SYST
Performance |
| Timeline |
| MIRAMAR HOTEL INV |
| COMBA TELECOM SYST |
MIRAMAR HOTEL and COMBA TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRAMAR HOTEL and COMBA TELECOM
The main advantage of trading using opposite MIRAMAR HOTEL and COMBA TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRAMAR HOTEL position performs unexpectedly, COMBA TELECOM 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 COMBA TELECOM will offset losses from the drop in COMBA TELECOM's long position.| MIRAMAR HOTEL vs. CECO ENVIRONMENTAL | MIRAMAR HOTEL vs. GigaMedia | MIRAMAR HOTEL vs. LEGACY IRON ORE | MIRAMAR HOTEL vs. BLUESCOPE STEEL |
| COMBA TELECOM vs. SIVERS SEMICONDUCTORS AB | COMBA TELECOM vs. Darden Restaurants | COMBA TELECOM vs. Reliance Steel Aluminum | COMBA TELECOM vs. Q2M Managementberatung AG |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stocks Directory Find actively traded stocks across global markets |