Correlation Between SUNBIRD HOTELS and NATIONAL INVESTMENT
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By analyzing existing cross correlation between SUNBIRD HOTELS TOURISM and NATIONAL INVESTMENT TRUST, you can compare the effects of market volatilities on SUNBIRD HOTELS and NATIONAL INVESTMENT 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 NATIONAL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNBIRD HOTELS and NATIONAL INVESTMENT.
Diversification Opportunities for SUNBIRD HOTELS and NATIONAL INVESTMENT
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SUNBIRD and NATIONAL is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SUNBIRD HOTELS TOURISM and NATIONAL INVESTMENT TRUST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL INVESTMENT TRUST 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 NATIONAL INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL INVESTMENT TRUST has no effect on the direction of SUNBIRD HOTELS i.e., SUNBIRD HOTELS and NATIONAL INVESTMENT go up and down completely randomly.
Pair Corralation between SUNBIRD HOTELS and NATIONAL INVESTMENT
Assuming the 90 days trading horizon SUNBIRD HOTELS is expected to generate 1.16 times less return on investment than NATIONAL INVESTMENT. In addition to that, SUNBIRD HOTELS is 1.01 times more volatile than NATIONAL INVESTMENT TRUST. It trades about 0.13 of its total potential returns per unit of risk. NATIONAL INVESTMENT TRUST is currently generating about 0.15 per unit of volatility. If you would invest 18,860 in NATIONAL INVESTMENT TRUST on November 19, 2024 and sell it today you would earn a total of 39,440 from holding NATIONAL INVESTMENT TRUST or generate 209.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUNBIRD HOTELS TOURISM vs. NATIONAL INVESTMENT TRUST
Performance |
| Timeline |
| SUNBIRD HOTELS TOURISM |
| NATIONAL INVESTMENT TRUST |
SUNBIRD HOTELS and NATIONAL INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNBIRD HOTELS and NATIONAL INVESTMENT
The main advantage of trading using opposite SUNBIRD HOTELS and NATIONAL INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNBIRD HOTELS position performs unexpectedly, NATIONAL INVESTMENT 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 NATIONAL INVESTMENT will offset losses from the drop in NATIONAL INVESTMENT's long position.| SUNBIRD HOTELS vs. STANDARD BANK LIMITED | SUNBIRD HOTELS vs. NBS BANK LIMITED | SUNBIRD HOTELS vs. MALAWI PROPERTY INVESTMENT | SUNBIRD HOTELS vs. NATIONAL INVESTMENT TRUST |
| NATIONAL INVESTMENT vs. STANDARD BANK LIMITED | NATIONAL INVESTMENT vs. BLANTYRE HOTELS LIMITED | NATIONAL INVESTMENT vs. FDH BANK PLC | NATIONAL INVESTMENT vs. NBS BANK LIMITED |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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