Correlation Between IM Vinaria and Compania Hoteliera
Can any of the company-specific risk be diversified away by investing in both IM Vinaria and Compania Hoteliera 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 IM Vinaria and Compania Hoteliera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IM Vinaria Purcari and Compania Hoteliera InterContinental, you can compare the effects of market volatilities on IM Vinaria and Compania Hoteliera 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 IM Vinaria with a short position of Compania Hoteliera. Check out your portfolio center. Please also check ongoing floating volatility patterns of IM Vinaria and Compania Hoteliera.
Diversification Opportunities for IM Vinaria and Compania Hoteliera
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between WINE and Compania is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding IM Vinaria Purcari and Compania Hoteliera InterContin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Hoteliera and IM Vinaria 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 IM Vinaria Purcari are associated (or correlated) with Compania Hoteliera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Hoteliera has no effect on the direction of IM Vinaria i.e., IM Vinaria and Compania Hoteliera go up and down completely randomly.
Pair Corralation between IM Vinaria and Compania Hoteliera
Assuming the 90 days trading horizon IM Vinaria Purcari is expected to under-perform the Compania Hoteliera. But the stock apears to be less risky and, when comparing its historical volatility, IM Vinaria Purcari is 3.17 times less risky than Compania Hoteliera. The stock trades about -0.02 of its potential returns per unit of risk. The Compania Hoteliera InterContinental is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Compania Hoteliera InterContinental on October 22, 2024 and sell it today you would lose (1.00) from holding Compania Hoteliera InterContinental or give up 4.55% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.25% |
Values | Daily Returns |
IM Vinaria Purcari vs. Compania Hoteliera InterContin
Performance |
Timeline |
IM Vinaria Purcari |
Compania Hoteliera |
IM Vinaria and Compania Hoteliera Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IM Vinaria and Compania Hoteliera
The main advantage of trading using opposite IM Vinaria and Compania Hoteliera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IM Vinaria position performs unexpectedly, Compania Hoteliera 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 Compania Hoteliera will offset losses from the drop in Compania Hoteliera's long position.IM Vinaria vs. TRANSILVANIA INVESTMENTS ALLIANCE | IM Vinaria vs. Evergent Investments SA | IM Vinaria vs. Infinity Capital Investments | IM Vinaria vs. Compania Hoteliera InterContinental |
Compania Hoteliera vs. Compania Nationala de | Compania Hoteliera vs. SCUT SA BACAU | Compania Hoteliera vs. AQUILA PART PROD | Compania Hoteliera vs. ZENTIVA SA |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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