Correlation Between Xenia Hotels and News
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and News 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 News 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 News Corporation, you can compare the effects of market volatilities on Xenia Hotels and News 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 News. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and News.
Diversification Opportunities for Xenia Hotels and News
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xenia and News is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and News Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News 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 News. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and News go up and down completely randomly.
Pair Corralation between Xenia Hotels and News
Assuming the 90 days trading horizon Xenia Hotels is expected to generate 1.17 times less return on investment than News. In addition to that, Xenia Hotels is 1.52 times more volatile than News Corporation. It trades about 0.2 of its total potential returns per unit of risk. News Corporation is currently generating about 0.36 per unit of volatility. If you would invest 2,440 in News Corporation on August 29, 2024 and sell it today you would earn a total of 340.00 from holding News Corporation or generate 13.93% 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. News Corp.
Performance |
| Timeline |
| Xenia Hotels Resorts |
| News |
Xenia Hotels and News Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and News
The main advantage of trading using opposite Xenia Hotels and News positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, News 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 News will offset losses from the drop in News' long position.| Xenia Hotels vs. Lamar Advertising | Xenia Hotels vs. PTT Global Chemical | Xenia Hotels vs. Mitsubishi Gas Chemical | Xenia Hotels vs. YATRA ONLINE DL 0001 |
| News vs. Compagnie Plastic Omnium | News vs. Meli Hotels International | News vs. Eagle Materials | News 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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