Correlation Between MIRAMAR HOTEL and EBRO FOODS

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Can any of the company-specific risk be diversified away by investing in both MIRAMAR HOTEL and EBRO FOODS 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 MIRAMAR HOTEL and EBRO FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MIRAMAR HOTEL INV and EBRO FOODS, you can compare the effects of market volatilities on MIRAMAR HOTEL and EBRO FOODS 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 MIRAMAR HOTEL with a short position of EBRO FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIRAMAR HOTEL and EBRO FOODS.

Diversification Opportunities for MIRAMAR HOTEL and EBRO FOODS

MIRAMAREBRODiversified AwayMIRAMAREBRODiversified Away100%
-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between MIRAMAR and EBRO is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding MIRAMAR HOTEL INV and EBRO FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EBRO FOODS and MIRAMAR HOTEL 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 MIRAMAR HOTEL INV are associated (or correlated) with EBRO FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EBRO FOODS has no effect on the direction of MIRAMAR HOTEL i.e., MIRAMAR HOTEL and EBRO FOODS go up and down completely randomly.

Pair Corralation between MIRAMAR HOTEL and EBRO FOODS

Assuming the 90 days trading horizon MIRAMAR HOTEL INV is expected to under-perform the EBRO FOODS. But the stock apears to be less risky and, when comparing its historical volatility, MIRAMAR HOTEL INV is 1.28 times less risky than EBRO FOODS. The stock trades about -0.09 of its potential returns per unit of risk. The EBRO FOODS is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  1,608  in EBRO FOODS on October 28, 2024 and sell it today you would lose (22.00) from holding EBRO FOODS or give up 1.37% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

MIRAMAR HOTEL INV  vs.  EBRO FOODS

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -2024
JavaScript chart by amCharts 3.21.15MRL AZU
       Timeline  
MIRAMAR HOTEL INV 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days MIRAMAR HOTEL INV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, MIRAMAR HOTEL is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1.081.091.11.111.121.131.14
EBRO FOODS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days EBRO FOODS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, EBRO FOODS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan15.515.615.715.815.91616.116.216.3

MIRAMAR HOTEL and EBRO FOODS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.1-0.81-0.52-0.23-0.03260.08940.360.650.941.23 0.20.40.60.8
JavaScript chart by amCharts 3.21.15MRL AZU
       Returns  

Pair Trading with MIRAMAR HOTEL and EBRO FOODS

The main advantage of trading using opposite MIRAMAR HOTEL and EBRO FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIRAMAR HOTEL position performs unexpectedly, EBRO FOODS 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 EBRO FOODS will offset losses from the drop in EBRO FOODS's long position.
The idea behind MIRAMAR HOTEL INV and EBRO FOODS 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.
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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