Correlation Between Hotel Property and Imugene
Can any of the company-specific risk be diversified away by investing in both Hotel Property and Imugene 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 Hotel Property and Imugene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hotel Property Investments and Imugene, you can compare the effects of market volatilities on Hotel Property and Imugene 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 Hotel Property with a short position of Imugene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Property and Imugene.
Diversification Opportunities for Hotel Property and Imugene
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hotel and Imugene is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Property Investments and Imugene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imugene and Hotel Property 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 Hotel Property Investments are associated (or correlated) with Imugene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imugene has no effect on the direction of Hotel Property i.e., Hotel Property and Imugene go up and down completely randomly.
Pair Corralation between Hotel Property and Imugene
Assuming the 90 days trading horizon Hotel Property Investments is expected to generate 0.25 times more return on investment than Imugene. However, Hotel Property Investments is 3.94 times less risky than Imugene. It trades about 0.06 of its potential returns per unit of risk. Imugene is currently generating about -0.07 per unit of risk. If you would invest 365.00 in Hotel Property Investments on September 14, 2024 and sell it today you would earn a total of 13.00 from holding Hotel Property Investments or generate 3.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hotel Property Investments vs. Imugene
Performance |
Timeline |
Hotel Property Inves |
Imugene |
Hotel Property and Imugene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hotel Property and Imugene
The main advantage of trading using opposite Hotel Property and Imugene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Property position performs unexpectedly, Imugene 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 Imugene will offset losses from the drop in Imugene's long position.Hotel Property vs. Ainsworth Game Technology | Hotel Property vs. Aurelia Metals | Hotel Property vs. Neurotech International | Hotel Property vs. Richmond Vanadium Technology |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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