Correlation Between Xenia Hotels and IRONBARK ZINC
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and IRONBARK ZINC 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 IRONBARK ZINC 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 IRONBARK ZINC, you can compare the effects of market volatilities on Xenia Hotels and IRONBARK ZINC 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 IRONBARK ZINC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and IRONBARK ZINC.
Diversification Opportunities for Xenia Hotels and IRONBARK ZINC
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xenia and IRONBARK is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and IRONBARK ZINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRONBARK ZINC 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 IRONBARK ZINC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRONBARK ZINC has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and IRONBARK ZINC go up and down completely randomly.
Pair Corralation between Xenia Hotels and IRONBARK ZINC
If you would invest 1,380 in Xenia Hotels Resorts on September 22, 2024 and sell it today you would earn a total of 50.00 from holding Xenia Hotels Resorts or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. IRONBARK ZINC
Performance |
| Timeline |
| Xenia Hotels Resorts |
| IRONBARK ZINC |
Xenia Hotels and IRONBARK ZINC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and IRONBARK ZINC
The main advantage of trading using opposite Xenia Hotels and IRONBARK ZINC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, IRONBARK ZINC 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 IRONBARK ZINC will offset losses from the drop in IRONBARK ZINC's long position.| Xenia Hotels vs. Host Hotels Resorts | Xenia Hotels vs. Ryman Hospitality Properties | Xenia Hotels vs. Park Hotels Resorts | Xenia Hotels vs. Pebblebrook Hotel Trust |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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