Correlation Between MIRAMAR HOTEL and Mitie Group
Can any of the company-specific risk be diversified away by investing in both MIRAMAR HOTEL and Mitie Group 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 Mitie Group 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 Mitie Group PLC, you can compare the effects of market volatilities on MIRAMAR HOTEL and Mitie Group 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 Mitie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and Mitie Group.
Diversification Opportunities for MIRAMAR HOTEL and Mitie Group
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between MIRAMAR and Mitie is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding MIRAMAR HOTEL INV and Mitie Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitie Group PLC 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 Mitie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitie Group PLC has no effect on the direction of MIRAMAR HOTEL i.e., MIRAMAR HOTEL and Mitie Group go up and down completely randomly.
Pair Corralation between MIRAMAR HOTEL and Mitie Group
Assuming the 90 days trading horizon MIRAMAR HOTEL INV is expected to generate 1.31 times more return on investment than Mitie Group. However, MIRAMAR HOTEL is 1.31 times more volatile than Mitie Group PLC. It trades about 0.06 of its potential returns per unit of risk. Mitie Group PLC is currently generating about -0.01 per unit of risk. If you would invest 56.00 in MIRAMAR HOTEL INV on August 31, 2024 and sell it today you would earn a total of 56.00 from holding MIRAMAR HOTEL INV or generate 100.0% 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. Mitie Group PLC
Performance |
| Timeline |
| MIRAMAR HOTEL INV |
| Mitie Group PLC |
MIRAMAR HOTEL and Mitie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIRAMAR HOTEL and Mitie Group
The main advantage of trading using opposite MIRAMAR HOTEL and Mitie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRAMAR HOTEL position performs unexpectedly, Mitie Group 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 Mitie Group will offset losses from the drop in Mitie Group's long position.| MIRAMAR HOTEL vs. Lion One Metals | MIRAMAR HOTEL vs. LION ONE METALS | MIRAMAR HOTEL vs. UNIVMUSIC GRPADR050 | MIRAMAR HOTEL vs. Direct Line Insurance |
| Mitie Group vs. FIREWEED METALS P | Mitie Group vs. MIRAMAR HOTEL INV | Mitie Group vs. DALATA HOTEL | Mitie Group vs. HYATT HOTELS A |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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