Correlation Between Yelooo Integra and Eastparc Hotel
Can any of the company-specific risk be diversified away by investing in both Yelooo Integra and Eastparc Hotel 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 Yelooo Integra and Eastparc Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yelooo Integra Datanet and Eastparc Hotel Tbk, you can compare the effects of market volatilities on Yelooo Integra and Eastparc Hotel 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 Yelooo Integra with a short position of Eastparc Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yelooo Integra and Eastparc Hotel.
Diversification Opportunities for Yelooo Integra and Eastparc Hotel
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yelooo and Eastparc is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Yelooo Integra Datanet and Eastparc Hotel Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastparc Hotel Tbk and Yelooo Integra 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 Yelooo Integra Datanet are associated (or correlated) with Eastparc Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastparc Hotel Tbk has no effect on the direction of Yelooo Integra i.e., Yelooo Integra and Eastparc Hotel go up and down completely randomly.
Pair Corralation between Yelooo Integra and Eastparc Hotel
Assuming the 90 days trading horizon Yelooo Integra Datanet is expected to under-perform the Eastparc Hotel. In addition to that, Yelooo Integra is 1.86 times more volatile than Eastparc Hotel Tbk. It trades about -0.06 of its total potential returns per unit of risk. Eastparc Hotel Tbk is currently generating about 0.04 per unit of volatility. If you would invest 8,969 in Eastparc Hotel Tbk on September 14, 2024 and sell it today you would earn a total of 2,531 from holding Eastparc Hotel Tbk or generate 28.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yelooo Integra Datanet vs. Eastparc Hotel Tbk
Performance |
| Timeline |
| Yelooo Integra Datanet |
| Eastparc Hotel Tbk |
Yelooo Integra and Eastparc Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yelooo Integra and Eastparc Hotel
The main advantage of trading using opposite Yelooo Integra and Eastparc Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yelooo Integra position performs unexpectedly, Eastparc Hotel 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 Eastparc Hotel will offset losses from the drop in Eastparc Hotel's long position.| Yelooo Integra vs. PT Bank Bisnis | Yelooo Integra vs. Ashmore Asset Management | Yelooo Integra vs. Metrodata Electronics Tbk | Yelooo Integra vs. Alumindo Light Metal |
| Eastparc Hotel vs. Menteng Heritage Realty | Eastparc Hotel vs. Hotel Fitra International | Eastparc Hotel vs. Jasa Armada Indonesia | Eastparc Hotel vs. Cahayaputra Asa Keramik |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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