Correlation Between PPHE Hotel and Beowulf Mining
Can any of the company-specific risk be diversified away by investing in both PPHE Hotel and Beowulf Mining 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 PPHE Hotel and Beowulf Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PPHE Hotel Group and Beowulf Mining, you can compare the effects of market volatilities on PPHE Hotel and Beowulf Mining 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 PPHE Hotel with a short position of Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of PPHE Hotel and Beowulf Mining.
Diversification Opportunities for PPHE Hotel and Beowulf Mining
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PPHE and Beowulf is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding PPHE Hotel Group and Beowulf Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining and PPHE 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 PPHE Hotel Group are associated (or correlated) with Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining has no effect on the direction of PPHE Hotel i.e., PPHE Hotel and Beowulf Mining go up and down completely randomly.
Pair Corralation between PPHE Hotel and Beowulf Mining
Assuming the 90 days trading horizon PPHE Hotel Group is expected to generate 0.27 times more return on investment than Beowulf Mining. However, PPHE Hotel Group is 3.68 times less risky than Beowulf Mining. It trades about 0.0 of its potential returns per unit of risk. Beowulf Mining is currently generating about -0.07 per unit of risk. If you would invest 122,150 in PPHE Hotel Group on September 2, 2024 and sell it today you would lose (4,650) from holding PPHE Hotel Group or give up 3.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PPHE Hotel Group vs. Beowulf Mining
Performance |
| Timeline |
| PPHE Hotel Group |
| Beowulf Mining |
PPHE Hotel and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PPHE Hotel and Beowulf Mining
The main advantage of trading using opposite PPHE Hotel and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PPHE Hotel position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| PPHE Hotel vs. Ecclesiastical Insurance Office | PPHE Hotel vs. Norman Broadbent Plc | PPHE Hotel vs. Broadcom | PPHE Hotel vs. Systemair AB |
| Beowulf Mining vs. Celebrus Technologies plc | Beowulf Mining vs. TechnipFMC PLC | Beowulf Mining vs. Aeorema Communications Plc | Beowulf Mining vs. Gamma Communications PLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |