Correlation Between Xenia Hotels and MINCO SILVER
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels and MINCO SILVER 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 MINCO SILVER 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 MINCO SILVER, you can compare the effects of market volatilities on Xenia Hotels and MINCO SILVER 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 MINCO SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and MINCO SILVER.
Diversification Opportunities for Xenia Hotels and MINCO SILVER
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xenia and MINCO is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and MINCO SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINCO SILVER 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 MINCO SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINCO SILVER has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and MINCO SILVER go up and down completely randomly.
Pair Corralation between Xenia Hotels and MINCO SILVER
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to generate 0.46 times more return on investment than MINCO SILVER. However, Xenia Hotels Resorts is 2.17 times less risky than MINCO SILVER. It trades about 0.05 of its potential returns per unit of risk. MINCO SILVER is currently generating about -0.02 per unit of risk. If you would invest 1,286 in Xenia Hotels Resorts on September 3, 2024 and sell it today you would earn a total of 144.00 from holding Xenia Hotels Resorts or generate 11.2% 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. MINCO SILVER
Performance |
| Timeline |
| Xenia Hotels Resorts |
| MINCO SILVER |
Xenia Hotels and MINCO SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xenia Hotels and MINCO SILVER
The main advantage of trading using opposite Xenia Hotels and MINCO SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels position performs unexpectedly, MINCO SILVER 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 MINCO SILVER will offset losses from the drop in MINCO SILVER'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 |
| MINCO SILVER vs. TOTAL GABON | MINCO SILVER vs. Walgreens Boots Alliance | MINCO SILVER vs. Peak Resources Limited |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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