Correlation Between Selina Hospitality and Bowhead Specialty
Can any of the company-specific risk be diversified away by investing in both Selina Hospitality and Bowhead Specialty 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 Selina Hospitality and Bowhead Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selina Hospitality PLC and Bowhead Specialty Holdings, you can compare the effects of market volatilities on Selina Hospitality and Bowhead Specialty 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 Selina Hospitality with a short position of Bowhead Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selina Hospitality and Bowhead Specialty.
Diversification Opportunities for Selina Hospitality and Bowhead Specialty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Selina and Bowhead is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Selina Hospitality PLC and Bowhead Specialty Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowhead Specialty and Selina 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 Selina Hospitality PLC are associated (or correlated) with Bowhead Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowhead Specialty has no effect on the direction of Selina Hospitality i.e., Selina Hospitality and Bowhead Specialty go up and down completely randomly.
Pair Corralation between Selina Hospitality and Bowhead Specialty
If you would invest 2,380 in Bowhead Specialty Holdings on October 9, 2024 and sell it today you would earn a total of 847.00 from holding Bowhead Specialty Holdings or generate 35.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.64% |
| Values | Daily Returns |
Selina Hospitality PLC vs. Bowhead Specialty Holdings
Performance |
| Timeline |
| Selina Hospitality PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bowhead Specialty |
Selina Hospitality and Bowhead Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selina Hospitality and Bowhead Specialty
The main advantage of trading using opposite Selina Hospitality and Bowhead Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selina Hospitality position performs unexpectedly, Bowhead Specialty 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 Bowhead Specialty will offset losses from the drop in Bowhead Specialty's long position.| Selina Hospitality vs. Lizhan Environmental | Selina Hospitality vs. Energy and Environmental | Selina Hospitality vs. Fomento Economico Mexicano | Selina Hospitality vs. Loud Beverage Group |
| Bowhead Specialty vs. The Mosaic | Bowhead Specialty vs. KVH Industries | Bowhead Specialty vs. Ecovyst | Bowhead Specialty vs. Hudson Technologies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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