Correlation Between Quality Hospitality and HEMARAJ INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Quality Hospitality and HEMARAJ INDUSTRIAL 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 Quality Hospitality and HEMARAJ INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quality Hospitality Leasehold and HEMARAJ INDUSTRIAL PROPERTY, you can compare the effects of market volatilities on Quality Hospitality and HEMARAJ INDUSTRIAL 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 Quality Hospitality with a short position of HEMARAJ INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quality Hospitality and HEMARAJ INDUSTRIAL.
Diversification Opportunities for Quality Hospitality and HEMARAJ INDUSTRIAL
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Quality and HEMARAJ is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Quality Hospitality Leasehold and HEMARAJ INDUSTRIAL PROPERTY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEMARAJ INDUSTRIAL and Quality Hospitality 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 Quality Hospitality Leasehold are associated (or correlated) with HEMARAJ INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEMARAJ INDUSTRIAL has no effect on the direction of Quality Hospitality i.e., Quality Hospitality and HEMARAJ INDUSTRIAL go up and down completely randomly.
Pair Corralation between Quality Hospitality and HEMARAJ INDUSTRIAL
Assuming the 90 days trading horizon Quality Hospitality is expected to generate 12.62 times less return on investment than HEMARAJ INDUSTRIAL. But when comparing it to its historical volatility, Quality Hospitality Leasehold is 3.56 times less risky than HEMARAJ INDUSTRIAL. It trades about 0.04 of its potential returns per unit of risk. HEMARAJ INDUSTRIAL PROPERTY is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 476.00 in HEMARAJ INDUSTRIAL PROPERTY on October 7, 2024 and sell it today you would earn a total of 29.00 from holding HEMARAJ INDUSTRIAL PROPERTY or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Quality Hospitality Leasehold vs. HEMARAJ INDUSTRIAL PROPERTY
Performance |
| Timeline |
| Quality Hospitality |
| HEMARAJ INDUSTRIAL |
Quality Hospitality and HEMARAJ INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quality Hospitality and HEMARAJ INDUSTRIAL
The main advantage of trading using opposite Quality Hospitality and HEMARAJ INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quality Hospitality position performs unexpectedly, HEMARAJ INDUSTRIAL 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 HEMARAJ INDUSTRIAL will offset losses from the drop in HEMARAJ INDUSTRIAL's long position.| Quality Hospitality vs. Quality Houses Hotel | Quality Hospitality vs. Quality Houses Property | Quality Hospitality vs. HEMARAJ INDUSTRIAL PROPERTY | Quality Hospitality vs. The Erawan Group |
| HEMARAJ INDUSTRIAL vs. Prime Office Leasehold | HEMARAJ INDUSTRIAL vs. Golden Ventures Leasehold | HEMARAJ INDUSTRIAL vs. Impact Growth REIT |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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