Correlation Between NATIONAL INVESTMENT and CONSTANCE HOTELS
Can any of the company-specific risk be diversified away by investing in both NATIONAL INVESTMENT and CONSTANCE HOTELS 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 NATIONAL INVESTMENT and CONSTANCE HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NATIONAL INVESTMENT TRUST and CONSTANCE HOTELS SERVICES, you can compare the effects of market volatilities on NATIONAL INVESTMENT and CONSTANCE HOTELS 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 NATIONAL INVESTMENT with a short position of CONSTANCE HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NATIONAL INVESTMENT and CONSTANCE HOTELS.
Diversification Opportunities for NATIONAL INVESTMENT and CONSTANCE HOTELS
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NATIONAL and CONSTANCE is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding NATIONAL INVESTMENT TRUST and CONSTANCE HOTELS SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSTANCE HOTELS SERVICES and NATIONAL INVESTMENT 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 NATIONAL INVESTMENT TRUST are associated (or correlated) with CONSTANCE HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSTANCE HOTELS SERVICES has no effect on the direction of NATIONAL INVESTMENT i.e., NATIONAL INVESTMENT and CONSTANCE HOTELS go up and down completely randomly.
Pair Corralation between NATIONAL INVESTMENT and CONSTANCE HOTELS
Assuming the 90 days trading horizon NATIONAL INVESTMENT TRUST is expected to generate 21.3 times more return on investment than CONSTANCE HOTELS. However, NATIONAL INVESTMENT is 21.3 times more volatile than CONSTANCE HOTELS SERVICES. It trades about 0.04 of its potential returns per unit of risk. CONSTANCE HOTELS SERVICES is currently generating about 0.0 per unit of risk. If you would invest 1,050 in NATIONAL INVESTMENT TRUST on August 30, 2024 and sell it today you would earn a total of 50.00 from holding NATIONAL INVESTMENT TRUST or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NATIONAL INVESTMENT TRUST vs. CONSTANCE HOTELS SERVICES
Performance |
| Timeline |
| NATIONAL INVESTMENT TRUST |
| CONSTANCE HOTELS SERVICES |
NATIONAL INVESTMENT and CONSTANCE HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NATIONAL INVESTMENT and CONSTANCE HOTELS
The main advantage of trading using opposite NATIONAL INVESTMENT and CONSTANCE HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NATIONAL INVESTMENT position performs unexpectedly, CONSTANCE HOTELS 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 CONSTANCE HOTELS will offset losses from the drop in CONSTANCE HOTELS's long position.| NATIONAL INVESTMENT vs. PSG FINANCIAL SERVICES | NATIONAL INVESTMENT vs. ASTORIA INVESTMENT LTD | NATIONAL INVESTMENT vs. AGAPE GLOBAL INVESTMENTS | NATIONAL INVESTMENT vs. LOTTOTECH LTD |
| CONSTANCE HOTELS vs. NATIONAL INVESTMENT TRUST | CONSTANCE HOTELS vs. AFRICA CLEAN ENERGY | CONSTANCE HOTELS vs. UNITED INVESTMENTS LTD | CONSTANCE HOTELS vs. CAVELL TOURISTIC INVESTMENTS |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |