Correlation Between Compania Hoteliera and IHUNT TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Compania Hoteliera and IHUNT TECHNOLOGY 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 Compania Hoteliera and IHUNT TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compania Hoteliera InterContinental and IHUNT TECHNOLOGY IMPORT EXPORT, you can compare the effects of market volatilities on Compania Hoteliera and IHUNT TECHNOLOGY 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 Compania Hoteliera with a short position of IHUNT TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Hoteliera and IHUNT TECHNOLOGY.
Diversification Opportunities for Compania Hoteliera and IHUNT TECHNOLOGY
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Compania and IHUNT is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Compania Hoteliera InterContin and IHUNT TECHNOLOGY IMPORT EXPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHUNT TECHNOLOGY IMPORT and Compania Hoteliera 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 Compania Hoteliera InterContinental are associated (or correlated) with IHUNT TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHUNT TECHNOLOGY IMPORT has no effect on the direction of Compania Hoteliera i.e., Compania Hoteliera and IHUNT TECHNOLOGY go up and down completely randomly.
Pair Corralation between Compania Hoteliera and IHUNT TECHNOLOGY
Assuming the 90 days trading horizon Compania Hoteliera InterContinental is expected to generate 1.93 times more return on investment than IHUNT TECHNOLOGY. However, Compania Hoteliera is 1.93 times more volatile than IHUNT TECHNOLOGY IMPORT EXPORT. It trades about 0.05 of its potential returns per unit of risk. IHUNT TECHNOLOGY IMPORT EXPORT is currently generating about -0.04 per unit of risk. If you would invest 21.00 in Compania Hoteliera InterContinental on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Compania Hoteliera InterContinental or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compania Hoteliera InterContin vs. IHUNT TECHNOLOGY IMPORT EXPORT
Performance |
| Timeline |
| Compania Hoteliera |
| IHUNT TECHNOLOGY IMPORT |
Compania Hoteliera and IHUNT TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania Hoteliera and IHUNT TECHNOLOGY
The main advantage of trading using opposite Compania Hoteliera and IHUNT TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Hoteliera position performs unexpectedly, IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY will offset losses from the drop in IHUNT TECHNOLOGY's long position.| Compania Hoteliera vs. TRANSILVANIA INVESTMENTS ALLIANCE | Compania Hoteliera vs. Digi Communications NV | Compania Hoteliera vs. IM Vinaria Purcari | Compania Hoteliera vs. Evergent Investments SA |
| IHUNT TECHNOLOGY vs. AROBS TRANSILVANIA SOFTWARE | IHUNT TECHNOLOGY vs. TRANSILVANIA INVESTMENTS ALLIANCE | IHUNT TECHNOLOGY vs. Patria Bank SA | IHUNT TECHNOLOGY vs. Digi Communications NV |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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