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 SA 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
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Axway and Pebblebrook is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software SA 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 SA 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 trading horizon Axway Software SA is expected to generate 0.47 times more return on investment than Pebblebrook Hotel. However, Axway Software SA is 2.14 times less risky than Pebblebrook Hotel. It trades about 0.19 of its potential returns per unit of risk. Pebblebrook Hotel Trust is currently generating about 0.07 per unit of risk. If you would invest 2,270 in Axway Software SA on October 18, 2024 and sell it today you would earn a total of 400.00 from holding Axway Software SA or generate 17.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axway Software SA vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| Axway Software SA |
| 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. JSC Halyk bank | Axway Software vs. Computershare Limited | Axway Software vs. Webster Financial | Axway Software vs. UNIQA INSURANCE GR |
| Pebblebrook Hotel vs. Meiko Electronics Co | Pebblebrook Hotel vs. Kingdee International Software | Pebblebrook Hotel vs. AXWAY SOFTWARE EO | Pebblebrook Hotel vs. Axway Software SA |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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