Correlation Between VIRGIN WINES and Xenia Hotels
Can any of the company-specific risk be diversified away by investing in both VIRGIN WINES and Xenia Hotels 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 VIRGIN WINES and Xenia Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIRGIN WINES UK and Xenia Hotels Resorts, you can compare the effects of market volatilities on VIRGIN WINES and Xenia Hotels 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 VIRGIN WINES with a short position of Xenia Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIRGIN WINES and Xenia Hotels.
Diversification Opportunities for VIRGIN WINES and Xenia Hotels
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VIRGIN and Xenia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIRGIN WINES UK and Xenia Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xenia Hotels Resorts and VIRGIN WINES 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 VIRGIN WINES UK are associated (or correlated) with Xenia Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xenia Hotels Resorts has no effect on the direction of VIRGIN WINES i.e., VIRGIN WINES and Xenia Hotels go up and down completely randomly.
Pair Corralation between VIRGIN WINES and Xenia Hotels
If you would invest 1,330 in Xenia Hotels Resorts on August 30, 2024 and sell it today you would earn a total of 130.00 from holding Xenia Hotels Resorts or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
VIRGIN WINES UK vs. Xenia Hotels Resorts
Performance |
| Timeline |
| VIRGIN WINES UK |
| Xenia Hotels Resorts |
VIRGIN WINES and Xenia Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIRGIN WINES and Xenia Hotels
The main advantage of trading using opposite VIRGIN WINES and Xenia Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIRGIN WINES position performs unexpectedly, Xenia Hotels 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 Xenia Hotels will offset losses from the drop in Xenia Hotels' long position.| VIRGIN WINES vs. LANSON BCC INH EO | VIRGIN WINES vs. Superior Plus Corp | VIRGIN WINES vs. SIVERS SEMICONDUCTORS AB | VIRGIN WINES vs. Talanx AG |
| Xenia Hotels vs. Host Hotels Resorts | Xenia Hotels vs. Sunstone Hotel Investors | Xenia Hotels vs. Summit Hotel Properties |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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