Correlation Between Xenia Hotels and TELE2 -B-
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and TELE2 -B- 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 TELE2 -B- 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 TELE2 B , you can compare the effects of market volatilities on Xenia Hotels and TELE2 -B- 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 TELE2 -B-. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and TELE2 -B-.
Diversification Opportunities for Xenia Hotels and TELE2 -B-
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xenia and TELE2 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and TELE2 B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELE2 -B- 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 TELE2 -B-. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELE2 -B- has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and TELE2 -B- go up and down completely randomly.
Pair Corralation between Xenia Hotels and TELE2 -B-
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to under-perform the TELE2 -B-. In addition to that, Xenia Hotels is 1.63 times more volatile than TELE2 B . It trades about -0.12 of its total potential returns per unit of risk. TELE2 B is currently generating about -0.19 per unit of volatility. If you would invest 982.00 in TELE2 B on October 11, 2024 and sell it today you would lose (43.00) from holding TELE2 B or give up 4.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Xenia Hotels Resorts vs. TELE2 B
Performance |
| Timeline |
| Xenia Hotels Resorts |
| TELE2 -B- |
Xenia Hotels and TELE2 -B- Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and TELE2 -B-
The main advantage of trading using opposite Xenia Hotels and TELE2 -B- positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, TELE2 -B- 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 TELE2 -B- will offset losses from the drop in TELE2 -B-'s long position.| Xenia Hotels vs. ETFS Coffee ETC | Xenia Hotels vs. Shenzhen Investment Limited | Xenia Hotels vs. Apollo Investment Corp | Xenia Hotels vs. SLR Investment Corp |
| TELE2 -B- vs. Sunstone Hotel Investors | TELE2 -B- vs. Hollywood Bowl Group | TELE2 -B- vs. Xenia Hotels Resorts | TELE2 -B- 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 Stocks Directory module to find actively traded stocks across global markets.
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