Correlation Between MIRAMAR HOTEL and Marks
Can any of the company-specific risk be diversified away by investing in both MIRAMAR HOTEL and Marks 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 Marks 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 Marks and Spencer, you can compare the effects of market volatilities on MIRAMAR HOTEL and Marks 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 Marks. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and Marks.
Diversification Opportunities for MIRAMAR HOTEL and Marks
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between MIRAMAR and Marks is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding MIRAMAR HOTEL INV and Marks and Spencer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marks and Spencer 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 Marks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marks and Spencer has no effect on the direction of MIRAMAR HOTEL i.e., MIRAMAR HOTEL and Marks go up and down completely randomly.
Pair Corralation between MIRAMAR HOTEL and Marks
Assuming the 90 days trading horizon MIRAMAR HOTEL is expected to generate 1.36 times less return on investment than Marks. In addition to that, MIRAMAR HOTEL is 1.07 times more volatile than Marks and Spencer. It trades about 0.07 of its total potential returns per unit of risk. Marks and Spencer is currently generating about 0.1 per unit of volatility. If you would invest 163.00 in Marks and Spencer on October 11, 2024 and sell it today you would earn a total of 298.00 from holding Marks and Spencer or generate 182.82% 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. Marks and Spencer
Performance |
| Timeline |
| MIRAMAR HOTEL INV |
| Marks and Spencer |
MIRAMAR HOTEL and Marks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRAMAR HOTEL and Marks
The main advantage of trading using opposite MIRAMAR HOTEL and Marks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRAMAR HOTEL position performs unexpectedly, Marks 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 Marks will offset losses from the drop in Marks' long position.| MIRAMAR HOTEL vs. SENECA FOODS A | MIRAMAR HOTEL vs. Cogent Communications Holdings | MIRAMAR HOTEL vs. National Beverage Corp | MIRAMAR HOTEL vs. Zoom Video Communications |
| Marks vs. MIRAMAR HOTEL INV | Marks vs. TRADEDOUBLER AB SK | Marks vs. Fast Retailing Co | Marks vs. Choice Hotels International |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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