Correlation Between NH HOTEL and FPX Nickel
Can any of the company-specific risk be diversified away by investing in both NH HOTEL and FPX Nickel 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 NH HOTEL and FPX Nickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH HOTEL GROUP and FPX Nickel Corp, you can compare the effects of market volatilities on NH HOTEL and FPX Nickel 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 NH HOTEL with a short position of FPX Nickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH HOTEL and FPX Nickel.
Diversification Opportunities for NH HOTEL and FPX Nickel
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between NH5 and FPX is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding NH HOTEL GROUP and FPX Nickel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FPX Nickel Corp and NH 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 NH HOTEL GROUP are associated (or correlated) with FPX Nickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FPX Nickel Corp has no effect on the direction of NH HOTEL i.e., NH HOTEL and FPX Nickel go up and down completely randomly.
Pair Corralation between NH HOTEL and FPX Nickel
Assuming the 90 days trading horizon NH HOTEL GROUP is expected to generate 0.63 times more return on investment than FPX Nickel. However, NH HOTEL GROUP is 1.59 times less risky than FPX Nickel. It trades about 0.03 of its potential returns per unit of risk. FPX Nickel Corp is currently generating about 0.0 per unit of risk. If you would invest 310.00 in NH HOTEL GROUP on September 2, 2024 and sell it today you would earn a total of 101.00 from holding NH HOTEL GROUP or generate 32.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH HOTEL GROUP vs. FPX Nickel Corp
Performance |
| Timeline |
| NH HOTEL GROUP |
| FPX Nickel Corp |
NH HOTEL and FPX Nickel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH HOTEL and FPX Nickel
The main advantage of trading using opposite NH HOTEL and FPX Nickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH HOTEL position performs unexpectedly, FPX Nickel 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 FPX Nickel will offset losses from the drop in FPX Nickel's long position.| NH HOTEL vs. SIVERS SEMICONDUCTORS AB | NH HOTEL vs. Darden Restaurants | NH HOTEL vs. Reliance Steel Aluminum | NH HOTEL 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |