Correlation Between MIRAMAR HOTEL and FISH PAYK
Can any of the company-specific risk be diversified away by investing in both MIRAMAR HOTEL and FISH PAYK 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 FISH PAYK 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 FISH PAYK HEALTH, you can compare the effects of market volatilities on MIRAMAR HOTEL and FISH PAYK 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 FISH PAYK. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and FISH PAYK.
Diversification Opportunities for MIRAMAR HOTEL and FISH PAYK
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between MIRAMAR and FISH is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding MIRAMAR HOTEL INV and FISH PAYK HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FISH PAYK HEALTH 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 FISH PAYK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FISH PAYK HEALTH has no effect on the direction of MIRAMAR HOTEL i.e., MIRAMAR HOTEL and FISH PAYK go up and down completely randomly.
Pair Corralation between MIRAMAR HOTEL and FISH PAYK
Assuming the 90 days trading horizon MIRAMAR HOTEL INV is expected to generate 1.46 times more return on investment than FISH PAYK. However, MIRAMAR HOTEL is 1.46 times more volatile than FISH PAYK HEALTH. It trades about 0.06 of its potential returns per unit of risk. FISH PAYK HEALTH is currently generating about 0.06 per unit of risk. If you would invest 55.00 in MIRAMAR HOTEL INV on September 12, 2024 and sell it today you would earn a total of 56.00 from holding MIRAMAR HOTEL INV or generate 101.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MIRAMAR HOTEL INV vs. FISH PAYK HEALTH
Performance |
| Timeline |
| MIRAMAR HOTEL INV |
| FISH PAYK HEALTH |
MIRAMAR HOTEL and FISH PAYK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRAMAR HOTEL and FISH PAYK
The main advantage of trading using opposite MIRAMAR HOTEL and FISH PAYK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRAMAR HOTEL position performs unexpectedly, FISH PAYK 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 FISH PAYK will offset losses from the drop in FISH PAYK's long position.| MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Apple Inc |
| FISH PAYK vs. INSURANCE AUST GRP | FISH PAYK vs. SBI Insurance Group | FISH PAYK vs. GRUPO CARSO A1 | FISH PAYK vs. Reinsurance Group of |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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