Correlation Between NH Hoteles and Fidere Patrimonio
Can any of the company-specific risk be diversified away by investing in both NH Hoteles and Fidere Patrimonio 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 Hoteles and Fidere Patrimonio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Hoteles and Fidere Patrimonio SOCIMI, you can compare the effects of market volatilities on NH Hoteles and Fidere Patrimonio 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 Hoteles with a short position of Fidere Patrimonio. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Hoteles and Fidere Patrimonio.
Diversification Opportunities for NH Hoteles and Fidere Patrimonio
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NHH and Fidere is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding NH Hoteles and Fidere Patrimonio SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidere Patrimonio SOCIMI and NH Hoteles 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 Hoteles are associated (or correlated) with Fidere Patrimonio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidere Patrimonio SOCIMI has no effect on the direction of NH Hoteles i.e., NH Hoteles and Fidere Patrimonio go up and down completely randomly.
Pair Corralation between NH Hoteles and Fidere Patrimonio
Assuming the 90 days trading horizon NH Hoteles is expected to generate 0.93 times more return on investment than Fidere Patrimonio. However, NH Hoteles is 1.08 times less risky than Fidere Patrimonio. It trades about 0.01 of its potential returns per unit of risk. Fidere Patrimonio SOCIMI is currently generating about -0.05 per unit of risk. If you would invest 431.00 in NH Hoteles on September 12, 2024 and sell it today you would earn a total of 16.00 from holding NH Hoteles or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Hoteles vs. Fidere Patrimonio SOCIMI
Performance |
| Timeline |
| NH Hoteles |
| Fidere Patrimonio SOCIMI |
NH Hoteles and Fidere Patrimonio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Hoteles and Fidere Patrimonio
The main advantage of trading using opposite NH Hoteles and Fidere Patrimonio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Hoteles position performs unexpectedly, Fidere Patrimonio 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 Fidere Patrimonio will offset losses from the drop in Fidere Patrimonio's long position.| NH Hoteles vs. International Consolidated Airlines | NH Hoteles vs. Aena SA | NH Hoteles vs. Acerinox | NH Hoteles vs. ACS Actividades de |
| Fidere Patrimonio vs. NH Hoteles | Fidere Patrimonio vs. Plasticos Compuestos SA | Fidere Patrimonio vs. All Iron Re | Fidere Patrimonio vs. Atrys Health SL |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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