Correlation Between Quantum Computing and InterContinental
Can any of the company-specific risk be diversified away by investing in both Quantum Computing and InterContinental 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 Quantum Computing and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantum Computing and InterContinental Hotels Group, you can compare the effects of market volatilities on Quantum Computing and InterContinental 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 Quantum Computing with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum Computing and InterContinental.
Diversification Opportunities for Quantum Computing and InterContinental
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Quantum and InterContinental is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Quantum Computing and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and Quantum Computing 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 Quantum Computing are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of Quantum Computing i.e., Quantum Computing and InterContinental go up and down completely randomly.
Pair Corralation between Quantum Computing and InterContinental
Given the investment horizon of 90 days Quantum Computing is expected to generate 10.22 times more return on investment than InterContinental. However, Quantum Computing is 10.22 times more volatile than InterContinental Hotels Group. It trades about 0.22 of its potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.12 per unit of risk. If you would invest 63.00 in Quantum Computing on November 2, 2024 and sell it today you would earn a total of 937.00 from holding Quantum Computing or generate 1487.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantum Computing vs. InterContinental Hotels Group
Performance |
| Timeline |
| Quantum Computing |
| InterContinental Hotels |
Quantum Computing and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantum Computing and InterContinental
The main advantage of trading using opposite Quantum Computing and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum Computing position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| Quantum Computing vs. D Wave Quantum | Quantum Computing vs. IONQ Inc | Quantum Computing vs. Quantum | Quantum Computing vs. Desktop Metal |
| InterContinental vs. Hyatt Hotels | InterContinental vs. Choice Hotels International | InterContinental vs. Hilton Worldwide Holdings | InterContinental vs. Wyndham Hotels Resorts |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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