Correlation Between Minor International and S Hotels
Can any of the company-specific risk be diversified away by investing in both Minor International and S 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 Minor International and S Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International Public and S Hotels and, you can compare the effects of market volatilities on Minor International and S 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 Minor International with a short position of S Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and S Hotels.
Diversification Opportunities for Minor International and S Hotels
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Minor and SHR is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Minor International Public and S Hotels and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S Hotels and Minor International 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 Minor International Public are associated (or correlated) with S Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S Hotels has no effect on the direction of Minor International i.e., Minor International and S Hotels go up and down completely randomly.
Pair Corralation between Minor International and S Hotels
Assuming the 90 days trading horizon Minor International Public is expected to generate 0.61 times more return on investment than S Hotels. However, Minor International Public is 1.64 times less risky than S Hotels. It trades about 0.15 of its potential returns per unit of risk. S Hotels and is currently generating about -0.16 per unit of risk. If you would invest 2,625 in Minor International Public on December 2, 2024 and sell it today you would earn a total of 275.00 from holding Minor International Public or generate 10.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Minor International Public vs. S Hotels and
Performance |
Timeline |
Minor International |
S Hotels |
Minor International and S Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Minor International and S Hotels
The main advantage of trading using opposite Minor International and S Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International position performs unexpectedly, S 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 S Hotels will offset losses from the drop in S Hotels' long position.Minor International vs. CP ALL Public | Minor International vs. Bangkok Dusit Medical | Minor International vs. Airports of Thailand | Minor International vs. Kasikornbank Public |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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