Correlation Between Playa Hotels and IMAGIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both Playa Hotels and IMAGIN MEDICAL 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 Playa Hotels and IMAGIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playa Hotels Resorts and IMAGIN MEDICAL INC, you can compare the effects of market volatilities on Playa Hotels and IMAGIN MEDICAL 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 Playa Hotels with a short position of IMAGIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playa Hotels and IMAGIN MEDICAL.
Diversification Opportunities for Playa Hotels and IMAGIN MEDICAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Playa and IMAGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Playa Hotels Resorts and IMAGIN MEDICAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAGIN MEDICAL INC and Playa Hotels 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 Playa Hotels Resorts are associated (or correlated) with IMAGIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMAGIN MEDICAL INC has no effect on the direction of Playa Hotels i.e., Playa Hotels and IMAGIN MEDICAL go up and down completely randomly.
Pair Corralation between Playa Hotels and IMAGIN MEDICAL
If you would invest 905.00 in Playa Hotels Resorts on October 22, 2024 and sell it today you would earn a total of 305.00 from holding Playa Hotels Resorts or generate 33.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Playa Hotels Resorts vs. IMAGIN MEDICAL INC
Performance |
| Timeline |
| Playa Hotels Resorts |
| IMAGIN MEDICAL INC |
Playa Hotels and IMAGIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playa Hotels and IMAGIN MEDICAL
The main advantage of trading using opposite Playa Hotels and IMAGIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playa Hotels position performs unexpectedly, IMAGIN MEDICAL 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 IMAGIN MEDICAL will offset losses from the drop in IMAGIN MEDICAL's long position.| Playa Hotels vs. PTT Global Chemical | Playa Hotels vs. AEON STORES | Playa Hotels vs. China BlueChemical | Playa Hotels vs. Siamgas And Petrochemicals |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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