Correlation Between PPHE Hotel and Ocean Harvest
Can any of the company-specific risk be diversified away by investing in both PPHE Hotel and Ocean Harvest 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 Ocean Harvest 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 Ocean Harvest Technology, you can compare the effects of market volatilities on PPHE Hotel and Ocean Harvest 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 Ocean Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of PPHE Hotel and Ocean Harvest.
Diversification Opportunities for PPHE Hotel and Ocean Harvest
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PPHE and Ocean is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding PPHE Hotel Group and Ocean Harvest Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Harvest Technology 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 Ocean Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Harvest Technology has no effect on the direction of PPHE Hotel i.e., PPHE Hotel and Ocean Harvest go up and down completely randomly.
Pair Corralation between PPHE Hotel and Ocean Harvest
Assuming the 90 days trading horizon PPHE Hotel Group is expected to generate 0.98 times more return on investment than Ocean Harvest. However, PPHE Hotel Group is 1.02 times less risky than Ocean Harvest. It trades about 0.09 of its potential returns per unit of risk. Ocean Harvest Technology is currently generating about -0.22 per unit of risk. If you would invest 122,000 in PPHE Hotel Group on November 3, 2024 and sell it today you would earn a total of 8,500 from holding PPHE Hotel Group or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
PPHE Hotel Group vs. Ocean Harvest Technology
Performance |
| Timeline |
| PPHE Hotel Group |
| Ocean Harvest Technology |
PPHE Hotel and Ocean Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PPHE Hotel and Ocean Harvest
The main advantage of trading using opposite PPHE Hotel and Ocean Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PPHE Hotel position performs unexpectedly, Ocean Harvest 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 Ocean Harvest will offset losses from the drop in Ocean Harvest's long position.| PPHE Hotel vs. Home Depot | PPHE Hotel vs. Aeorema Communications Plc | PPHE Hotel vs. Cairo Communication SpA | PPHE Hotel vs. Zoom Video Communications |
| Ocean Harvest vs. Bytes Technology | Ocean Harvest vs. Sartorius Stedim Biotech | Ocean Harvest vs. Beowulf Mining | Ocean Harvest vs. Coeur Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |