Correlation Between AM Locales and NH Hoteles
Can any of the company-specific risk be diversified away by investing in both AM Locales and NH Hoteles 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 AM Locales and NH Hoteles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM Locales Property and NH Hoteles, you can compare the effects of market volatilities on AM Locales and NH Hoteles 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 AM Locales with a short position of NH Hoteles. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM Locales and NH Hoteles.
Diversification Opportunities for AM Locales and NH Hoteles
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between YAML and NHH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AM Locales Property and NH Hoteles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Hoteles and AM Locales 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 AM Locales Property are associated (or correlated) with NH Hoteles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Hoteles has no effect on the direction of AM Locales i.e., AM Locales and NH Hoteles go up and down completely randomly.
Pair Corralation between AM Locales and NH Hoteles
Assuming the 90 days trading horizon AM Locales is expected to generate 503.0 times less return on investment than NH Hoteles. But when comparing it to its historical volatility, AM Locales Property is 8.97 times less risky than NH Hoteles. It trades about 0.0 of its potential returns per unit of risk. NH Hoteles is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 405.00 in NH Hoteles on September 12, 2024 and sell it today you would earn a total of 42.00 from holding NH Hoteles or generate 10.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
AM Locales Property vs. NH Hoteles
Performance |
| Timeline |
| AM Locales Property |
| NH Hoteles |
AM Locales and NH Hoteles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AM Locales and NH Hoteles
The main advantage of trading using opposite AM Locales and NH Hoteles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM Locales position performs unexpectedly, NH Hoteles 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 NH Hoteles will offset losses from the drop in NH Hoteles' long position.| AM Locales vs. International Consolidated Airlines | AM Locales vs. Azaria Rental SOCIMI | AM Locales vs. Borges Agricultural Industrial | AM Locales vs. Arteche Lantegi Elkartea |
| NH Hoteles vs. International Consolidated Airlines | NH Hoteles vs. Aena SA | NH Hoteles vs. Acerinox | NH Hoteles vs. ACS Actividades de |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges |