Correlation Between Xenia Hotels and ABO-GROUP ENVIRONMENT
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and ABO-GROUP ENVIRONMENT 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 Xenia Hotels and ABO-GROUP ENVIRONMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xenia Hotels Resorts and ABO GROUP ENVIRONMENT, you can compare the effects of market volatilities on Xenia Hotels and ABO-GROUP ENVIRONMENT 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 Xenia Hotels with a short position of ABO-GROUP ENVIRONMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and ABO-GROUP ENVIRONMENT.
Diversification Opportunities for Xenia Hotels and ABO-GROUP ENVIRONMENT
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xenia and ABO-GROUP is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and ABO GROUP ENVIRONMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABO GROUP ENVIRONMENT and Xenia 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 Xenia Hotels Resorts are associated (or correlated) with ABO-GROUP ENVIRONMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABO GROUP ENVIRONMENT has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and ABO-GROUP ENVIRONMENT go up and down completely randomly.
Pair Corralation between Xenia Hotels and ABO-GROUP ENVIRONMENT
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to under-perform the ABO-GROUP ENVIRONMENT. In addition to that, Xenia Hotels is 2.11 times more volatile than ABO GROUP ENVIRONMENT. It trades about -0.11 of its total potential returns per unit of risk. ABO GROUP ENVIRONMENT is currently generating about -0.12 per unit of volatility. If you would invest 486.00 in ABO GROUP ENVIRONMENT on October 17, 2024 and sell it today you would lose (10.00) from holding ABO GROUP ENVIRONMENT or give up 2.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. ABO GROUP ENVIRONMENT
Performance |
| Timeline |
| Xenia Hotels Resorts |
| ABO GROUP ENVIRONMENT |
Xenia Hotels and ABO-GROUP ENVIRONMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and ABO-GROUP ENVIRONMENT
The main advantage of trading using opposite Xenia Hotels and ABO-GROUP ENVIRONMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, ABO-GROUP ENVIRONMENT 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 ABO-GROUP ENVIRONMENT will offset losses from the drop in ABO-GROUP ENVIRONMENT's long position.| Xenia Hotels vs. Host Hotels Resorts | Xenia Hotels vs. Park Hotels Resorts | Xenia Hotels vs. Pebblebrook Hotel Trust | Xenia Hotels vs. Sunstone Hotel Investors |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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