Correlation Between Xenia Hotels and AbbVie
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and AbbVie 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 AbbVie 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 AbbVie Inc, you can compare the effects of market volatilities on Xenia Hotels and AbbVie 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 AbbVie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and AbbVie.
Diversification Opportunities for Xenia Hotels and AbbVie
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xenia and AbbVie is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and AbbVie Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AbbVie Inc 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 AbbVie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AbbVie Inc has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and AbbVie go up and down completely randomly.
Pair Corralation between Xenia Hotels and AbbVie
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to generate 1.44 times more return on investment than AbbVie. However, Xenia Hotels is 1.44 times more volatile than AbbVie Inc. It trades about 0.17 of its potential returns per unit of risk. AbbVie Inc is currently generating about 0.07 per unit of risk. If you would invest 1,390 in Xenia Hotels Resorts on September 12, 2024 and sell it today you would earn a total of 110.00 from holding Xenia Hotels Resorts or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. AbbVie Inc
Performance |
| Timeline |
| Xenia Hotels Resorts |
| AbbVie Inc |
Xenia Hotels and AbbVie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and AbbVie
The main advantage of trading using opposite Xenia Hotels and AbbVie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, AbbVie 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 AbbVie will offset losses from the drop in AbbVie's long position.| Xenia Hotels vs. Host Hotels Resorts | Xenia Hotels vs. Sunstone Hotel Investors | Xenia Hotels vs. Summit Hotel Properties | Xenia Hotels vs. ASHFORD HOSPITTRUST |
| AbbVie vs. Mitsubishi Gas Chemical | AbbVie vs. Soken Chemical Engineering | AbbVie vs. CITY OFFICE REIT | AbbVie vs. AIR PRODCHEMICALS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |