Correlation Between Oasis Hotel and Permanent TSB
Can any of the company-specific risk be diversified away by investing in both Oasis Hotel and Permanent TSB 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 Oasis Hotel and Permanent TSB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oasis Hotel Resort and Permanent TSB Group, you can compare the effects of market volatilities on Oasis Hotel and Permanent TSB 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 Oasis Hotel with a short position of Permanent TSB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oasis Hotel and Permanent TSB.
Diversification Opportunities for Oasis Hotel and Permanent TSB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oasis and Permanent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oasis Hotel Resort and Permanent TSB Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Permanent TSB Group and Oasis 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 Oasis Hotel Resort are associated (or correlated) with Permanent TSB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Permanent TSB Group has no effect on the direction of Oasis Hotel i.e., Oasis Hotel and Permanent TSB go up and down completely randomly.
Pair Corralation between Oasis Hotel and Permanent TSB
If you would invest 150.00 in Permanent TSB Group on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Permanent TSB Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Oasis Hotel Resort vs. Permanent TSB Group
Performance |
| Timeline |
| Oasis Hotel Resort |
| Permanent TSB Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oasis Hotel and Permanent TSB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oasis Hotel and Permanent TSB
The main advantage of trading using opposite Oasis Hotel and Permanent TSB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oasis Hotel position performs unexpectedly, Permanent TSB 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 Permanent TSB will offset losses from the drop in Permanent TSB's long position.| Oasis Hotel vs. Apple Inc | Oasis Hotel vs. Microsoft | Oasis Hotel vs. Alphabet Inc Class C | Oasis Hotel vs. Meta Platforms |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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