Correlation Between Xenia Hotels and Chevron
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and Chevron 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 Chevron 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 Chevron, you can compare the effects of market volatilities on Xenia Hotels and Chevron 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 Chevron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and Chevron.
Diversification Opportunities for Xenia Hotels and Chevron
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xenia and Chevron is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and Chevron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron 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 Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and Chevron go up and down completely randomly.
Pair Corralation between Xenia Hotels and Chevron
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to generate 2.03 times more return on investment than Chevron. However, Xenia Hotels is 2.03 times more volatile than Chevron. It trades about 0.19 of its potential returns per unit of risk. Chevron is currently generating about 0.02 per unit of risk. If you would invest 1,410 in Xenia Hotels Resorts on September 14, 2024 and sell it today you would earn a total of 120.00 from holding Xenia Hotels Resorts or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. Chevron
Performance |
| Timeline |
| Xenia Hotels Resorts |
| Chevron |
Xenia Hotels and Chevron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and Chevron
The main advantage of trading using opposite Xenia Hotels and Chevron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, Chevron 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 Chevron will offset losses from the drop in Chevron's long position.| Xenia Hotels vs. Altair Engineering | Xenia Hotels vs. Westinghouse Air Brake | Xenia Hotels vs. Flutter Entertainment PLC | Xenia Hotels vs. PARKEN Sport Entertainment |
| Chevron vs. Park Hotels Resorts | Chevron vs. NH HOTEL GROUP | Chevron vs. Sunstone Hotel Investors | Chevron vs. Xenia Hotels Resorts |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |