Correlation Between Xenia Hotels and Illinois Tool
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and Illinois Tool 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 Illinois Tool 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 Illinois Tool Works, you can compare the effects of market volatilities on Xenia Hotels and Illinois Tool 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 Illinois Tool. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and Illinois Tool.
Diversification Opportunities for Xenia Hotels and Illinois Tool
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xenia and Illinois is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and Illinois Tool Works in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Illinois Tool Works 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 Illinois Tool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Illinois Tool Works has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and Illinois Tool go up and down completely randomly.
Pair Corralation between Xenia Hotels and Illinois Tool
If you would invest 0.00 in Illinois Tool Works on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Illinois Tool Works or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. Illinois Tool Works
Performance |
| Timeline |
| Xenia Hotels Resorts |
| Illinois Tool Works |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Xenia Hotels and Illinois Tool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and Illinois Tool
The main advantage of trading using opposite Xenia Hotels and Illinois Tool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, Illinois Tool 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 Illinois Tool will offset losses from the drop in Illinois Tool's long position.| Xenia Hotels vs. BROADWIND ENRGY | Xenia Hotels vs. Focus Home Interactive | Xenia Hotels vs. DFS Furniture PLC | Xenia Hotels vs. The Home Depot |
| Illinois Tool vs. Synchrony Financial | Illinois Tool vs. Global Ship Lease | Illinois Tool vs. CullenFrost Bankers | Illinois Tool vs. CREDIT AGRICOLE |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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