Correlation Between Squirrel Media and Millenium Hotels
Can any of the company-specific risk be diversified away by investing in both Squirrel Media and Millenium Hotels 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 Squirrel Media and Millenium Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Squirrel Media SA and Millenium Hotels Real, you can compare the effects of market volatilities on Squirrel Media and Millenium Hotels 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 Squirrel Media with a short position of Millenium Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Squirrel Media and Millenium Hotels.
Diversification Opportunities for Squirrel Media and Millenium Hotels
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Squirrel and Millenium is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Squirrel Media SA and Millenium Hotels Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millenium Hotels Real and Squirrel Media 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 Squirrel Media SA are associated (or correlated) with Millenium Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millenium Hotels Real has no effect on the direction of Squirrel Media i.e., Squirrel Media and Millenium Hotels go up and down completely randomly.
Pair Corralation between Squirrel Media and Millenium Hotels
Assuming the 90 days trading horizon Squirrel Media SA is expected to generate 4.42 times more return on investment than Millenium Hotels. However, Squirrel Media is 4.42 times more volatile than Millenium Hotels Real. It trades about 0.2 of its potential returns per unit of risk. Millenium Hotels Real is currently generating about 0.68 per unit of risk. If you would invest 130.00 in Squirrel Media SA on October 17, 2024 and sell it today you would earn a total of 14.00 from holding Squirrel Media SA or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Squirrel Media SA vs. Millenium Hotels Real
Performance |
| Timeline |
| Squirrel Media SA |
| Millenium Hotels Real |
Squirrel Media and Millenium Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Squirrel Media and Millenium Hotels
The main advantage of trading using opposite Squirrel Media and Millenium Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Squirrel Media position performs unexpectedly, Millenium Hotels 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 Millenium Hotels will offset losses from the drop in Millenium Hotels' long position.| Squirrel Media vs. Techo Hogar SOCIMI, | Squirrel Media vs. Borges Agricultural Industrial | Squirrel Media vs. Neinor Homes SLU | Squirrel Media vs. Parlem Telecom Companyia |
| Millenium Hotels vs. Squirrel Media SA | Millenium Hotels vs. Arrienda Rental Properties | Millenium Hotels vs. Borges Agricultural Industrial | Millenium Hotels vs. Caixabank SA |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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