Correlation Between H FARM and INTERCONT HOTELS
Can any of the company-specific risk be diversified away by investing in both H FARM and INTERCONT HOTELS 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 H FARM and INTERCONT HOTELS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H FARM SPA and INTERCONT HOTELS, you can compare the effects of market volatilities on H FARM and INTERCONT HOTELS 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 H FARM with a short position of INTERCONT HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of H FARM and INTERCONT HOTELS.
Diversification Opportunities for H FARM and INTERCONT HOTELS
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 5JQ and INTERCONT is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding H FARM SPA and INTERCONT HOTELS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERCONT HOTELS and H FARM 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 H FARM SPA are associated (or correlated) with INTERCONT HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERCONT HOTELS has no effect on the direction of H FARM i.e., H FARM and INTERCONT HOTELS go up and down completely randomly.
Pair Corralation between H FARM and INTERCONT HOTELS
Assuming the 90 days horizon H FARM SPA is expected to under-perform the INTERCONT HOTELS. In addition to that, H FARM is 2.02 times more volatile than INTERCONT HOTELS. It trades about -0.04 of its total potential returns per unit of risk. INTERCONT HOTELS is currently generating about 0.19 per unit of volatility. If you would invest 9,550 in INTERCONT HOTELS on September 24, 2024 and sell it today you would earn a total of 2,450 from holding INTERCONT HOTELS or generate 25.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
H FARM SPA vs. INTERCONT HOTELS
Performance |
Timeline |
H FARM SPA |
INTERCONT HOTELS |
H FARM and INTERCONT HOTELS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with H FARM and INTERCONT HOTELS
The main advantage of trading using opposite H FARM and INTERCONT HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H FARM position performs unexpectedly, INTERCONT HOTELS 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 INTERCONT HOTELS will offset losses from the drop in INTERCONT HOTELS's long position.H FARM vs. Blackstone Group | H FARM vs. The Bank of | H FARM vs. Ameriprise Financial | H FARM vs. State Street |
INTERCONT HOTELS vs. Marriott International | INTERCONT HOTELS vs. Hilton Worldwide Holdings | INTERCONT HOTELS vs. H World Group | INTERCONT HOTELS vs. Hyatt Hotels |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |