Correlation Between Gaming and Pebblebrook Hotel
Can any of the company-specific risk be diversified away by investing in both Gaming 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 Gaming and Pebblebrook Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gaming and Leisure and Pebblebrook Hotel Trust, you can compare the effects of market volatilities on Gaming 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 Gaming with a short position of Pebblebrook Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gaming and Pebblebrook Hotel.
Diversification Opportunities for Gaming and Pebblebrook Hotel
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gaming and Pebblebrook is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gaming and Leisure 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 Gaming 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 Gaming and Leisure 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 Gaming i.e., Gaming and Pebblebrook Hotel go up and down completely randomly.
Pair Corralation between Gaming and Pebblebrook Hotel
Assuming the 90 days horizon Gaming and Leisure is expected to under-perform the Pebblebrook Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Gaming and Leisure is 1.26 times less risky than Pebblebrook Hotel. The stock trades about -0.01 of its potential returns per unit of risk. The Pebblebrook Hotel Trust is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,209 in Pebblebrook Hotel Trust on November 6, 2024 and sell it today you would earn a total of 51.00 from holding Pebblebrook Hotel Trust or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gaming and Leisure vs. Pebblebrook Hotel Trust
Performance |
| Timeline |
| Gaming and Leisure |
| Pebblebrook Hotel Trust |
Gaming and Pebblebrook Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gaming and Pebblebrook Hotel
The main advantage of trading using opposite Gaming and Pebblebrook Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gaming 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.| Gaming vs. Columbia Sportswear | Gaming vs. G III APPAREL GROUP | Gaming vs. URBAN OUTFITTERS | Gaming vs. BRAEMAR HOTELS RES |
| Pebblebrook Hotel vs. PennyMac Mortgage Investment | Pebblebrook Hotel vs. NH HOTEL GROUP | Pebblebrook Hotel vs. Regal Hotels International | Pebblebrook Hotel vs. SLR Investment Corp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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