Correlation Between Xenia Hotels and Glaston Oyj
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and Glaston Oyj 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 Glaston Oyj 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 Glaston Oyj Abp, you can compare the effects of market volatilities on Xenia Hotels and Glaston Oyj 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 Glaston Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and Glaston Oyj.
Diversification Opportunities for Xenia Hotels and Glaston Oyj
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xenia and Glaston is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and Glaston Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glaston Oyj Abp 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 Glaston Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glaston Oyj Abp has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and Glaston Oyj go up and down completely randomly.
Pair Corralation between Xenia Hotels and Glaston Oyj
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to generate 0.72 times more return on investment than Glaston Oyj. However, Xenia Hotels Resorts is 1.39 times less risky than Glaston Oyj. It trades about 0.04 of its potential returns per unit of risk. Glaston Oyj Abp is currently generating about -0.01 per unit of risk. If you would invest 1,137 in Xenia Hotels Resorts on August 31, 2024 and sell it today you would earn a total of 293.00 from holding Xenia Hotels Resorts or generate 25.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. Glaston Oyj Abp
Performance |
| Timeline |
| Xenia Hotels Resorts |
| Glaston Oyj Abp |
Xenia Hotels and Glaston Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and Glaston Oyj
The main advantage of trading using opposite Xenia Hotels and Glaston Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, Glaston Oyj 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 Glaston Oyj will offset losses from the drop in Glaston Oyj's long position.| Xenia Hotels vs. Park Hotels Resorts | Xenia Hotels vs. Pebblebrook Hotel Trust | Xenia Hotels vs. Sunstone Hotel Investors | Xenia Hotels vs. ASHFORD HOSPITTRUST |
| Glaston Oyj vs. BANKINTER ADR 2007 | Glaston Oyj vs. REINET INVESTMENTS SCA | Glaston Oyj vs. Webster Financial | Glaston Oyj vs. MGIC INVESTMENT |
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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