Correlation Between TRANSCORP HOTELS and TRANS NATIONWIDE
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By analyzing existing cross correlation between TRANSCORP HOTELS PLC and TRANS NATIONWIDE EXPRESS PLC, you can compare the effects of market volatilities on TRANSCORP HOTELS and TRANS NATIONWIDE 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 TRANSCORP HOTELS with a short position of TRANS NATIONWIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRANSCORP HOTELS and TRANS NATIONWIDE.
Diversification Opportunities for TRANSCORP HOTELS and TRANS NATIONWIDE
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TRANSCORP and TRANS is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding TRANSCORP HOTELS PLC and TRANS NATIONWIDE EXPRESS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANS NATIONWIDE EXP and TRANSCORP 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 TRANSCORP HOTELS PLC are associated (or correlated) with TRANS NATIONWIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANS NATIONWIDE EXP has no effect on the direction of TRANSCORP HOTELS i.e., TRANSCORP HOTELS and TRANS NATIONWIDE go up and down completely randomly.
Pair Corralation between TRANSCORP HOTELS and TRANS NATIONWIDE
Assuming the 90 days trading horizon TRANSCORP HOTELS is expected to generate 11.91 times less return on investment than TRANS NATIONWIDE. In addition to that, TRANSCORP HOTELS is 2.17 times more volatile than TRANS NATIONWIDE EXPRESS PLC. It trades about 0.0 of its total potential returns per unit of risk. TRANS NATIONWIDE EXPRESS PLC is currently generating about 0.1 per unit of volatility. If you would invest 200.00 in TRANS NATIONWIDE EXPRESS PLC on April 23, 2025 and sell it today you would earn a total of 15.00 from holding TRANS NATIONWIDE EXPRESS PLC or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRANSCORP HOTELS PLC vs. TRANS NATIONWIDE EXPRESS PLC
Performance |
| Timeline |
| TRANSCORP HOTELS PLC |
| TRANS NATIONWIDE EXP |
TRANSCORP HOTELS and TRANS NATIONWIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRANSCORP HOTELS and TRANS NATIONWIDE
The main advantage of trading using opposite TRANSCORP HOTELS and TRANS NATIONWIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRANSCORP HOTELS position performs unexpectedly, TRANS NATIONWIDE 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 TRANS NATIONWIDE will offset losses from the drop in TRANS NATIONWIDE's long position.| TRANSCORP HOTELS vs. FIDSON HEALTHCARE PLC | TRANSCORP HOTELS vs. STERLING FINANCIAL HOLDINGS | TRANSCORP HOTELS vs. CORONATION INSURANCE PLC | TRANSCORP HOTELS vs. IKEJA HOTELS PLC |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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