Correlation Between TR Property and InterContinental
Can any of the company-specific risk be diversified away by investing in both TR Property and InterContinental 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 TR Property and InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TR Property Investment and InterContinental Hotels Group, you can compare the effects of market volatilities on TR Property and InterContinental 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 TR Property with a short position of InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of TR Property and InterContinental.
Diversification Opportunities for TR Property and InterContinental
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TRY and InterContinental is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding TR Property Investment and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels and TR Property 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 TR Property Investment are associated (or correlated) with InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of TR Property i.e., TR Property and InterContinental go up and down completely randomly.
Pair Corralation between TR Property and InterContinental
Assuming the 90 days trading horizon TR Property Investment is expected to under-perform the InterContinental. In addition to that, TR Property Investment is as risky as InterContinental. It trades about -0.04 of its total potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.15 per unit of volatility. If you would invest 789,595 in InterContinental Hotels Group on August 31, 2024 and sell it today you would earn a total of 190,405 from holding InterContinental Hotels Group or generate 24.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TR Property Investment vs. InterContinental Hotels Group
Performance |
| Timeline |
| TR Property Investment |
| InterContinental Hotels |
TR Property and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TR Property and InterContinental
The main advantage of trading using opposite TR Property and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TR Property position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental's long position.| TR Property vs. Eastman Chemical Co | TR Property vs. American Tower REIT | TR Property vs. Ameriprise Financial | TR Property vs. Ibstock PLC |
| InterContinental vs. STMicroelectronics NV | InterContinental vs. Vulcan Materials Co | InterContinental vs. Zoom Video Communications | InterContinental vs. LPKF Laser Electronics |
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.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |