Correlation Between NEW MAURITIUS and UNITED INVESTMENTS
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By analyzing existing cross correlation between NEW MAURITIUS HOTELS and UNITED INVESTMENTS LTD, you can compare the effects of market volatilities on NEW MAURITIUS and UNITED INVESTMENTS 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 NEW MAURITIUS with a short position of UNITED INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEW MAURITIUS and UNITED INVESTMENTS.
Diversification Opportunities for NEW MAURITIUS and UNITED INVESTMENTS
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NEW and UNITED is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding NEW MAURITIUS HOTELS and UNITED INVESTMENTS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED INVESTMENTS LTD and NEW MAURITIUS 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 NEW MAURITIUS HOTELS are associated (or correlated) with UNITED INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED INVESTMENTS LTD has no effect on the direction of NEW MAURITIUS i.e., NEW MAURITIUS and UNITED INVESTMENTS go up and down completely randomly.
Pair Corralation between NEW MAURITIUS and UNITED INVESTMENTS
Assuming the 90 days trading horizon NEW MAURITIUS HOTELS is expected to generate 0.4 times more return on investment than UNITED INVESTMENTS. However, NEW MAURITIUS HOTELS is 2.52 times less risky than UNITED INVESTMENTS. It trades about 0.01 of its potential returns per unit of risk. UNITED INVESTMENTS LTD is currently generating about -0.12 per unit of risk. If you would invest 1,430 in NEW MAURITIUS HOTELS on August 27, 2024 and sell it today you would earn a total of 0.00 from holding NEW MAURITIUS HOTELS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEW MAURITIUS HOTELS vs. UNITED INVESTMENTS LTD
Performance |
| Timeline |
| NEW MAURITIUS HOTELS |
| UNITED INVESTMENTS LTD |
NEW MAURITIUS and UNITED INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEW MAURITIUS and UNITED INVESTMENTS
The main advantage of trading using opposite NEW MAURITIUS and UNITED INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEW MAURITIUS position performs unexpectedly, UNITED INVESTMENTS 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 UNITED INVESTMENTS will offset losses from the drop in UNITED INVESTMENTS's long position.| NEW MAURITIUS vs. ASTORIA INVESTMENT LTD | NEW MAURITIUS vs. QUALITY BEVERAGES LTD | NEW MAURITIUS vs. PHOENIX BEVERAGES LTD | NEW MAURITIUS vs. CAVELL TOURISTIC INVESTMENTS |
| UNITED INVESTMENTS vs. MCB GROUP LTD | UNITED INVESTMENTS vs. LOTTOTECH LTD | UNITED INVESTMENTS vs. NEW MAURITIUS HOTELS | UNITED INVESTMENTS vs. MIWA SUGAR LIMITED |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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