Correlation Between BEAU VALLON and NEW MAURITIUS
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By analyzing existing cross correlation between BEAU VALLON HOSPITAL and NEW MAURITIUS HOTELS, you can compare the effects of market volatilities on BEAU VALLON and NEW MAURITIUS 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 BEAU VALLON with a short position of NEW MAURITIUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEAU VALLON and NEW MAURITIUS.
Diversification Opportunities for BEAU VALLON and NEW MAURITIUS
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BEAU and NEW is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding BEAU VALLON HOSPITAL and NEW MAURITIUS HOTELS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEW MAURITIUS HOTELS and BEAU VALLON 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 BEAU VALLON HOSPITAL are associated (or correlated) with NEW MAURITIUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEW MAURITIUS HOTELS has no effect on the direction of BEAU VALLON i.e., BEAU VALLON and NEW MAURITIUS go up and down completely randomly.
Pair Corralation between BEAU VALLON and NEW MAURITIUS
Assuming the 90 days trading horizon BEAU VALLON HOSPITAL is expected to generate 1.76 times more return on investment than NEW MAURITIUS. However, BEAU VALLON is 1.76 times more volatile than NEW MAURITIUS HOTELS. It trades about 0.05 of its potential returns per unit of risk. NEW MAURITIUS HOTELS is currently generating about 0.07 per unit of risk. If you would invest 192.00 in BEAU VALLON HOSPITAL on September 14, 2024 and sell it today you would earn a total of 107.00 from holding BEAU VALLON HOSPITAL or generate 55.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.91% |
| Values | Daily Returns |
BEAU VALLON HOSPITAL vs. NEW MAURITIUS HOTELS
Performance |
| Timeline |
| BEAU VALLON HOSPITAL |
| NEW MAURITIUS HOTELS |
BEAU VALLON and NEW MAURITIUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEAU VALLON and NEW MAURITIUS
The main advantage of trading using opposite BEAU VALLON and NEW MAURITIUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEAU VALLON position performs unexpectedly, NEW MAURITIUS 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 NEW MAURITIUS will offset losses from the drop in NEW MAURITIUS's long position.| BEAU VALLON vs. LOTTOTECH LTD | BEAU VALLON vs. CAVELL TOURISTIC INVESTMENTS | BEAU VALLON vs. UNITED INVESTMENTS LTD | BEAU VALLON vs. AGAPE GLOBAL INVESTMENTS |
| NEW MAURITIUS vs. CAVELL TOURISTIC INVESTMENTS | NEW MAURITIUS vs. NATIONAL INVESTMENT TRUST | NEW MAURITIUS vs. AGAPE GLOBAL INVESTMENTS | NEW MAURITIUS vs. UNITED INVESTMENTS LTD |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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