Correlation Between S Hotels and NAT ABSOLUTE
Can any of the company-specific risk be diversified away by investing in both S Hotels and NAT ABSOLUTE 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 S Hotels and NAT ABSOLUTE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between S Hotels and and NAT ABSOLUTE TECHNOLOGIES, you can compare the effects of market volatilities on S Hotels and NAT ABSOLUTE 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 S Hotels with a short position of NAT ABSOLUTE. Check out your portfolio center. Please also check ongoing floating volatility patterns of S Hotels and NAT ABSOLUTE.
Diversification Opportunities for S Hotels and NAT ABSOLUTE
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SHR and NAT is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding S Hotels and and NAT ABSOLUTE TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAT ABSOLUTE TECHNOLOGIES and S Hotels 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 S Hotels and are associated (or correlated) with NAT ABSOLUTE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAT ABSOLUTE TECHNOLOGIES has no effect on the direction of S Hotels i.e., S Hotels and NAT ABSOLUTE go up and down completely randomly.
Pair Corralation between S Hotels and NAT ABSOLUTE
Assuming the 90 days trading horizon S Hotels and is expected to generate 0.73 times more return on investment than NAT ABSOLUTE. However, S Hotels and is 1.38 times less risky than NAT ABSOLUTE. It trades about -0.01 of its potential returns per unit of risk. NAT ABSOLUTE TECHNOLOGIES is currently generating about -0.01 per unit of risk. If you would invest 238.00 in S Hotels and on September 3, 2024 and sell it today you would lose (16.00) from holding S Hotels and or give up 6.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
S Hotels and vs. NAT ABSOLUTE TECHNOLOGIES
Performance |
| Timeline |
| S Hotels |
| NAT ABSOLUTE TECHNOLOGIES |
S Hotels and NAT ABSOLUTE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with S Hotels and NAT ABSOLUTE
The main advantage of trading using opposite S Hotels and NAT ABSOLUTE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S Hotels position performs unexpectedly, NAT ABSOLUTE 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 NAT ABSOLUTE will offset losses from the drop in NAT ABSOLUTE's long position.| S Hotels vs. Central Plaza Hotel | S Hotels vs. The Erawan Group | S Hotels vs. Minor International Public | S Hotels vs. Advanced Info Service |
| NAT ABSOLUTE vs. Delta Electronics Public | NAT ABSOLUTE vs. Delta Electronics Public | NAT ABSOLUTE vs. Airports of Thailand | NAT ABSOLUTE vs. Airports of Thailand |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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