Correlation Between Panther Metals and Scandic Hotels
Can any of the company-specific risk be diversified away by investing in both Panther Metals and Scandic 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 Panther Metals and Scandic Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Scandic Hotels Group, you can compare the effects of market volatilities on Panther Metals and Scandic 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 Panther Metals with a short position of Scandic Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Scandic Hotels.
Diversification Opportunities for Panther Metals and Scandic Hotels
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panther and Scandic is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Scandic Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandic Hotels Group and Panther Metals 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 Panther Metals PLC are associated (or correlated) with Scandic Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandic Hotels Group has no effect on the direction of Panther Metals i.e., Panther Metals and Scandic Hotels go up and down completely randomly.
Pair Corralation between Panther Metals and Scandic Hotels
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 39.43 times more return on investment than Scandic Hotels. However, Panther Metals is 39.43 times more volatile than Scandic Hotels Group. It trades about 0.07 of its potential returns per unit of risk. Scandic Hotels Group is currently generating about 0.09 per unit of risk. If you would invest 11,625 in Panther Metals PLC on September 19, 2024 and sell it today you would lose (3,375) from holding Panther Metals PLC or give up 29.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Panther Metals PLC vs. Scandic Hotels Group
Performance |
| Timeline |
| Panther Metals PLC |
| Scandic Hotels Group |
Panther Metals and Scandic Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Scandic Hotels
The main advantage of trading using opposite Panther Metals and Scandic Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, Scandic 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 Scandic Hotels will offset losses from the drop in Scandic Hotels' long position.| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Ferrexpo PLC | Panther Metals vs. Atalaya Mining |
| Scandic Hotels vs. Samsung Electronics Co | Scandic Hotels vs. Samsung Electronics Co | Scandic Hotels vs. Hyundai Motor | Scandic Hotels vs. Reliance Industries Ltd |
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.
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