Correlation Between Covivio Hotels and Maison Antoine

Can any of the company-specific risk be diversified away by investing in both Covivio Hotels and Maison Antoine 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 Covivio Hotels and Maison Antoine into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Covivio Hotels and Maison Antoine Baud, you can compare the effects of market volatilities on Covivio Hotels and Maison Antoine 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 Covivio Hotels with a short position of Maison Antoine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Covivio Hotels and Maison Antoine.

Diversification Opportunities for Covivio Hotels and Maison Antoine

0.0

Correlation Coefficient

Covivio Hotels  Maison Antoine

Pay attention - limited upside

The 3 months correlation between Covivio and Maison is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Covivio Hotels and Maison Antoine Baud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maison Antoine Baud and Covivio Hotels 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 Covivio Hotels are associated (or correlated) with Maison Antoine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maison Antoine Baud has no effect on the direction of Covivio Hotels i.e., Covivio Hotels and Maison Antoine go up and down completely randomly.

Pair Corralation between Covivio Hotels and Maison Antoine

If you would invest  1,855  in Covivio Hotels on October 23, 2024 and sell it today you would earn a total of  80.00  from holding Covivio Hotels or generate 4.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Covivio Hotels  vs.  Maison Antoine Baud

Covivio Hotels

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Covivio Hotels are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Covivio Hotels is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Maison Antoine Baud

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Maison Antoine Baud has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Maison Antoine is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Covivio Hotels and Maison Antoine

The main advantage of trading using opposite Covivio Hotels and Maison Antoine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Covivio Hotels position performs unexpectedly, Maison Antoine 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 Maison Antoine will offset losses from the drop in Maison Antoine's long position.

The idea behind Covivio Hotels and Maison Antoine Baud pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.