Correlation Between Host Hotels and IShares Physical
Can any of the company-specific risk be diversified away by investing in both Host Hotels and IShares Physical 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 Host Hotels and IShares Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Host Hotels Resorts and iShares Physical Silver, you can compare the effects of market volatilities on Host Hotels and IShares Physical 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 Host Hotels with a short position of IShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and IShares Physical.
Diversification Opportunities for Host Hotels and IShares Physical
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Host and IShares is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts and iShares Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Silver and Host 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 Host Hotels Resorts are associated (or correlated) with IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Silver has no effect on the direction of Host Hotels i.e., Host Hotels and IShares Physical go up and down completely randomly.
Pair Corralation between Host Hotels and IShares Physical
Assuming the 90 days trading horizon Host Hotels Resorts is expected to under-perform the IShares Physical. But the stock apears to be less risky and, when comparing its historical volatility, Host Hotels Resorts is 1.09 times less risky than IShares Physical. The stock trades about -0.2 of its potential returns per unit of risk. The iShares Physical Silver is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 2,981 in iShares Physical Silver on October 7, 2024 and sell it today you would lose (141.00) from holding iShares Physical Silver or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Host Hotels Resorts vs. iShares Physical Silver
Performance |
| Timeline |
| Host Hotels Resorts |
| iShares Physical Silver |
Host Hotels and IShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and IShares Physical
The main advantage of trading using opposite Host Hotels and IShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels position performs unexpectedly, IShares Physical 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 IShares Physical will offset losses from the drop in IShares Physical's long position.| Host Hotels vs. Seraphim Space Investment | Host Hotels vs. Edita Food Industries | Host Hotels vs. Edinburgh Investment Trust | Host Hotels vs. Smithson Investment Trust |
| IShares Physical vs. Invesco Physical Gold | IShares Physical vs. Neometals | IShares Physical vs. Coor Service Management | IShares Physical vs. Fidelity Sustainable USD |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |