Correlation Between AXWAY SOFTWARE and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both AXWAY SOFTWARE and Pebblebrook Hotel 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 AXWAY SOFTWARE and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXWAY SOFTWARE EO and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on AXWAY SOFTWARE and Pebblebrook Hotel 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 AXWAY SOFTWARE with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXWAY SOFTWARE and Pebblebrook Hotel.
Diversification Opportunities for AXWAY SOFTWARE and Pebblebrook Hotel
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AXWAY and Pebblebrook is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding AXWAY SOFTWARE EO and Pebblebrook Hotel Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pebblebrook Hotel Trust and AXWAY SOFTWARE 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 AXWAY SOFTWARE EO are associated (or correlated) with Pebblebrook Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pebblebrook Hotel Trust has no effect on the direction of AXWAY SOFTWARE i.e., AXWAY SOFTWARE and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between AXWAY SOFTWARE and Pebblebrook Hotel
Assuming the 90 days horizon AXWAY SOFTWARE EO is expected to generate 0.77 times more return on investment than Pebblebrook Hotel. However, AXWAY SOFTWARE EO is 1.3 times less risky than Pebblebrook Hotel. It trades about 0.01 of its potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about -0.21 per unit of risk. If you would invest 2,670 in AXWAY SOFTWARE EO on November 8, 2024 and sell it today you would earn a total of 10.00 from holding AXWAY SOFTWARE EO or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXWAY SOFTWARE EO vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| AXWAY SOFTWARE EO |
| Pebblebrook Hotel Trust |
AXWAY SOFTWARE and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXWAY SOFTWARE and Pebblebrook Hotel
The main advantage of trading using opposite AXWAY SOFTWARE and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXWAY SOFTWARE position performs unexpectedly, Pebblebrook Hotel 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 Pebblebrook Hotel will offset losses from the drop in Pebblebrook Hotel's long position.| AXWAY SOFTWARE vs. Salesforce | AXWAY SOFTWARE vs. SAP SE | AXWAY SOFTWARE vs. SAP SE | AXWAY SOFTWARE vs. ServiceNow |
| Pebblebrook Hotel vs. Mitsui Chemicals | Pebblebrook Hotel vs. PRECISION DRILLING P | Pebblebrook Hotel vs. CarsalesCom | Pebblebrook Hotel vs. CLOVER HEALTH INV |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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