Correlation Between Xenia Hotels and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Xenia Hotels and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and Jacquet Metal.
Diversification Opportunities for Xenia Hotels and Jacquet Metal
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xenia and Jacquet is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and Jacquet Metal go up and down completely randomly.
Pair Corralation between Xenia Hotels and Jacquet Metal
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to generate 1.07 times more return on investment than Jacquet Metal. However, Xenia Hotels is 1.07 times more volatile than Jacquet Metal Service. It trades about 0.04 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.02 per unit of risk. If you would invest 1,146 in Xenia Hotels Resorts on September 14, 2024 and sell it today you would earn a total of 384.00 from holding Xenia Hotels Resorts or generate 33.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. Jacquet Metal Service
Performance |
| Timeline |
| Xenia Hotels Resorts |
| Jacquet Metal Service |
Xenia Hotels and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and Jacquet Metal
The main advantage of trading using opposite Xenia Hotels and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal'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 |
| Jacquet Metal vs. ArcelorMittal | Jacquet Metal vs. NIPPON STEEL SPADR | Jacquet Metal vs. Reliance Steel Aluminum | Jacquet Metal vs. Superior Plus Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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