Correlation Between SUNBIRD HOTELS and NICO HOLDINGS

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SUNBIRD HOTELS and NICO HOLDINGS 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 SUNBIRD HOTELS and NICO HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUNBIRD HOTELS TOURISM and NICO HOLDINGS LIMITED, you can compare the effects of market volatilities on SUNBIRD HOTELS and NICO HOLDINGS 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 SUNBIRD HOTELS with a short position of NICO HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNBIRD HOTELS and NICO HOLDINGS.

Diversification Opportunities for SUNBIRD HOTELS and NICO HOLDINGS

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between SUNBIRD and NICO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SUNBIRD HOTELS TOURISM and NICO HOLDINGS LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NICO HOLDINGS LIMITED and SUNBIRD 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 SUNBIRD HOTELS TOURISM are associated (or correlated) with NICO HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NICO HOLDINGS LIMITED has no effect on the direction of SUNBIRD HOTELS i.e., SUNBIRD HOTELS and NICO HOLDINGS go up and down completely randomly.

Pair Corralation between SUNBIRD HOTELS and NICO HOLDINGS

If you would invest  10,500  in SUNBIRD HOTELS TOURISM on November 2, 2024 and sell it today you would earn a total of  17,112  from holding SUNBIRD HOTELS TOURISM or generate 162.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

SUNBIRD HOTELS TOURISM  vs.  NICO HOLDINGS LIMITED

 Performance 
       Timeline  
SUNBIRD HOTELS TOURISM 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in SUNBIRD HOTELS TOURISM are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward indicators, SUNBIRD HOTELS exhibited solid returns over the last few months and may actually be approaching a breakup point.
NICO HOLDINGS LIMITED 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Strong
Over the last 90 days NICO HOLDINGS LIMITED has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, NICO HOLDINGS is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

SUNBIRD HOTELS and NICO HOLDINGS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SUNBIRD HOTELS and NICO HOLDINGS

The main advantage of trading using opposite SUNBIRD HOTELS and NICO HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNBIRD HOTELS position performs unexpectedly, NICO HOLDINGS 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 NICO HOLDINGS will offset losses from the drop in NICO HOLDINGS's long position.
SUNBIRD HOTELS vs. BLANTYRE HOTELS LIMITED
SUNBIRD HOTELS vs. NATIONAL INVESTMENT TRUST
SUNBIRD HOTELS vs. MALAWI PROPERTY INVESTMENT
The idea behind SUNBIRD HOTELS TOURISM and NICO HOLDINGS LIMITED pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
NICO HOLDINGS vs. MALAWI PROPERTY INVESTMENT
NICO HOLDINGS vs. STANDARD BANK LIMITED
NICO HOLDINGS vs. NATIONAL INVESTMENT TRUST
NICO HOLDINGS vs. FDH BANK PLC
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Fundamental Analysis
View fundamental data based on most recent published financial statements
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY