Correlation Between Azaria Rental and NH Hoteles
Can any of the company-specific risk be diversified away by investing in both Azaria Rental 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 Azaria Rental and NH Hoteles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Azaria Rental SOCIMI and NH Hoteles, you can compare the effects of market volatilities on Azaria Rental 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 Azaria Rental with a short position of NH Hoteles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azaria Rental and NH Hoteles.
Diversification Opportunities for Azaria Rental and NH Hoteles
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Azaria and NHH is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Azaria Rental SOCIMI and NH Hoteles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Hoteles and Azaria Rental 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 Azaria Rental SOCIMI 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 Azaria Rental i.e., Azaria Rental and NH Hoteles go up and down completely randomly.
Pair Corralation between Azaria Rental and NH Hoteles
If you would invest 627.00 in NH Hoteles on November 5, 2024 and sell it today you would earn a total of 3.00 from holding NH Hoteles or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Azaria Rental SOCIMI vs. NH Hoteles
Performance |
| Timeline |
| Azaria Rental SOCIMI |
| NH Hoteles |
Azaria Rental and NH Hoteles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Azaria Rental and NH Hoteles
The main advantage of trading using opposite Azaria Rental and NH Hoteles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Azaria Rental 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.| Azaria Rental vs. Vytrus Biotech SA | Azaria Rental vs. NH Hoteles | Azaria Rental vs. Elaia Investment Spain | Azaria Rental vs. Aedas Homes SL |
| NH Hoteles vs. Melia Hotels | NH Hoteles vs. Indra A | NH Hoteles vs. Fomento de Construcciones | NH Hoteles vs. Acerinox |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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